Several e-tailers were higher in midday trading following some positive earnings news from
and an analyst upgrade for
Though many of the once-promising e-commerce companies have disappeared, some of the players have managed so far to weather the dot-com shakeout. Several of the names still serving the Internet-using public were enjoying nice runs in today's session.
index was up 0.75 points, or 3.5%, to 22.38 in recent action. Shares of priceline.com soared $1.20, or 24.7%, to $6.05, while Expedia was up $1.66, or 6.4%, to $27.67 on the
gained $3.05, or 10.8%, to $33.19.
, meanwhile, had a modest gain of 15 cents, or 1%, to $15.93. Online auctioneer
jumped $1.70, or 2.4%, to $52.12.
"Over the last month or so some of them have been doing pretty well," David Kathman, an analyst with
, said of the e-tailers. "Amazon has been up quite a bit the last couple of months because their earnings were slightly better than expected. eBay is still performing really well. priceline over the past month is way up because people are thinking they have the worst of their troubles behind them. They've pulled way back from the ambitious model they had a few years ago. They've regrouped and reformed as basically a travel site, which they initially were."
With the majority of the earnings reports for the latest quarter already out, Kathman said he doesn't see much sector-specific movement one way or the other in the next three months. "I don't see any major moves for the sector as a whole until the next earnings season," he said. "Some smaller e-tailers will continue to drop off the radar, but for the big ones, I don't see any major movement anytime soon. I don't anticipate any huge rallies in the sector until the next earnings season."
He largely attributed the upward movement Tuesday to a
upgrade of priceline.com and
Expedia's report that it had reached profitability ahead of schedule. Goldman analyst Anthony Noto upgraded priceline to market outperformer from market performer. He said the company is "still in a turnaround phase," but that the first quarter could be the last unprofitable quarter for the company.
On Monday, online travel company Expedia said it posted a profit a year ahead of schedule when it posted earnings of 9 cents a share for the third quarter.
"I think the frenzy of a year ago is gone and a lot of e-tailers are going out of business or getting bought out," Kathman said. "Ultimately, the survivors will be stronger. I'm not sure if we've gone through all the attrition we're going to go through yet."
But rest assured, some e-tailers' days are surely numbered, Kathman added.
"There's still plenty of really troubled companies like
, and I think in many of the cases they are not likely to survive," he continued. "We've gone through a lot of weeding out, but I don't think we're necessarily done with it all yet."