Net Stocks Inch Higher Despite Early Feasting on Profits

Positive news reports on several companies are helping to provide support in the sector.
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Internet stocks opened mixed, with positive news on several companies providing support, but pre-holiday profit-taking keeping others on the defensive.

TheStreet.com Internet Sector

index was up 0.70, or 0.1%, at 949.99 in early trading.

Yesterday's big decliner,

Extreme Networks

(EXTR) - Get Report

, was up 6 1/4, or 9%, at 76 1/2 early today.

TSC

took a closer look at the company in a

piece late yesterday. Meanwhile,

CNBC's

Maria Bartiromo was discussing positive comments on Extreme made by

Robertson Stephens

analyst Paul Johnson, which we reported

yesterday. Robertson Stephens has done underwriting for Extreme.

Sycamore Networks

(SCMR)

, which dropped in sympathy with Extreme Tuesday, was up 7, or 3%, at 240 15/16, though that was already off a session high of 250.

Credit Suisse First Boston

initiated coverage of the stock with a buy rating and a 12-month price target of 300. First Boston has not done underwriting for Sycamore.

Exodus Communications

(EXDS)

was up 3 11/16, or 3%, at 127 1/4. The company said late yesterday that it would acquire

Global OnLine Japan

, an Internet solutions provider in Japan. Exodus said the acquisition would accelerate its entry into the Japanese market and expand its managed service offerings and international customer base.

Yahoo!

(YHOO)

was up 6 13/16, or 3%, at 228 on positive comments from

Merrill Lynch's

Henry Blodget.

CNBC

reported that after a meeting with company officials, Blodget said the quarter was tracking above plans and could beat analysts' expectations.

Fatbrain.com

was down 3 3/8, or 9.4%, at 32 3/8 despite besting earnings estimates Tuesday night. Fatbrain reported a loss of $9.1 million, or 80 cents a share, for its third quarter, vs. the

First Call/Thomson Financial

estimate of an 82-cent loss per share. Sales came in at $8.2 million, compared with $5.8 million in the second quarter.

U.S. Bancorp Piper Jaffray

reiterated a strong buy rating on Fatbrain and raised its price target to 46 from 25. Piper Jaffray has done underwriting for Fatbrain.

Liquid Audio

(LQID)

was down 1, or 2.7%, at 36 on news that it had filed with the

Securities and Exchange Commission

to sell 3 million shares.