And now, the rest of the story.
Amazon-NextCard Deal: Join the discussion on our
yesterday that it would be making an announcement regarding "a significant strategic partnership" today, it sounded awfully similar to the
made Monday ahead of news that it was expanding its product line. Turns out there was good reason. NextCard said today that it formed a strategic relationship with Amazon to provide a co-branded Amazon.com/NextCard credit card.
According to the companies, the five-year relationship could generate $150 million in fees for Amazon, while NextCard will get the receivables generated from the
accounts. In addition, Amazon.com obtained a warrant to acquire up to 4.4 million shares of NextCard common stock, a stake of around 9.9%.
But unlike Amazon, which found it couldn't live up to the preannouncement hype, NextCard was adding to gains made yesterday, trading up 10 7/8, or 34%, at 42 1/2 early on. Amazon was even getting a boost, trading up 3 13/16, or 5%, at 74 5/8.
The Internet sector was mostly higher despite an initial negative reaction from this morning's
Producer Price Index
report, which rekindled inflation concerns.
TheStreet.com Internet Sector
index was up 9.98, or 1.2%, at 848.99.
report yesterday was helping
stocks this morning. Cisco was up 3 3/4, or 5%, at 78 in recent trading.
Among other stocks in the news,
Copper Mountain Networks
, a member of the
Red Hots, was up 4 5/8, or 6%, at 84. The company said today that it approved a 2-for-1 stock split for shareholders of record Nov. 25.
was one of the leading point-gainers on the Nasdaq after
upgraded the stock to strong buy from buy with a price target of 150. It was up 10 3/16, or 9%, at 125 3/4.
Drew Brosseau, analyst with SG Cowen, told
that the upgrade came after an analysts' call with Inktomi in which officials provided some bullish comments about the company's outlook. In addition, he said, the market has seen a fairly dramatic increase in valuations of Internet infrastructure companies lately, and Inktomi had not really participated in that move. SG Cowen has not done underwriting for Inktomi.
After reporting earnings Tuesday,
saw its shares fall 11/16, or 1.0%, to 52. The Internet advertising and marketing company posted a loss of 55 cents a share, beating the 66-cent loss estimate from
First Call/Thomson Financial
. It lost $11.7 million on sales of $24.3 million.
Among the day's IPOs,
United Parcel Service's
(UPS:NYSE) 109.4 million shares were
priced at $50. The company is seen as somewhat of an Internet e-commerce play because UPS delivers to online shoppers. Also
(EXPE:Nasdaq) online travel service was priced at $14, and
(IBAS:Nasdaq), which provides Internet telephony services, was priced at $16.