Internet investors remained somewhat cautious today despite an early leap in the technology sector, perhaps because Net stocks didn't wholeheartedly participate in Monday's tech rally
TheStreet.com Internet Sector
index was up 15.73, or 1.4%, at 1152.92 after trading as high as 1159.98.
TheStreet.com New Tech 30 was up 12.73, or 2.0%, at 660.65. Money continues to flow into old tech over new.
Among stocks in the news,
was down 8 5/16, or 6.4%, at 122 9/16. The company said that
Deutsche Banc Alex. Brown
, the lead underwriter for Foundry's initial public offering in September, had authorized the early release of approximately 5.1 million shares of common stock, subject to the underwriters' lockup restrictions. The released shares will become available for sale Thursday.
was down 2 3/8, or 1%, at 246 3/4 on news that it had priced 7.7 million shares of its stock at $247 per share in an offering.
was up 4 7/16, or 2.6%, at 174.
put out a note after yesterday's keynote address by eBay CEO Meg Whitman at the
Goldman Sachs Technology Symposium
. The note indicated that Whitman focused on growth potential of eBay's existing markets as well as the growth opportunities through global expansion and through entry into new markets, such as business-to-business.
Goldman analyst Michael Parekh wrote that eBay management discussed the rollout of
in Germany, a test platform for B2B trading of surplus merchandise. He indicated eBay has already garnered "a significant amount of success," hosting more than 50,000 B2B auctions, and that eBay may extend the initiative into new markets, including the U.S., in the next six months.
Separately, eBay said today that it would become the person-to-person trading site for
portal in a four-year agreement and introduced co-branded merchant-to-person sites for
was up 1 5/16, or 2.3%, at 58 5/16 despite a downgrade of the stock by Deutsche Banc Alex. Brown to buy from strong buy. Deutsche Banc transferred coverage of AOL to new analyst Andrea Williams, most recently of
and previously at
Volpe Brown Whelan
While noting that AOL was "the best-positioned company on the Internet," Williams wrote that the company's merger with
will create challenges for the company. Williams wrote that the merger could limit AOL's "flexibility in attacking certain market opportunities by locking it into certain assets." She noted that the transaction will close at the end of 2000, "representing a longer limbo phase than Internet investors are accustomed to."
Williams added that catalysts for AOL's stock include "visibility surrounding cross-promotional efforts"; traction of broadband penetration; the closing or the termination of the transaction with Time Warner; and visibility surrounding Time Warner's online assets." Deutsche Banc has done underwriting for AOL.
Deutsche Banc Alex. Brown also transferred coverage of
to Williams, but maintained its strong buy rating. Yahoo! was up 7 3/8, or 2.1%, at 361 3/8. It has recovered from yesterday's site problems that the company blamed on a coordinated target by hackers.
Deutsche Banc also began coverage of
with a strong buy rating. It was up 4, or 5.9%, at 72.
was up 5 1/8, or 5.2%, at 103 1/2.
Credit Suisse First Boston
reinstated coverage of the stock with a buy rating and a price target of 130.