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Web hoster

Exodus Communications

( EXDS) managed to stop a losing streak today by announcing that it raised nearly three-quarters of a billion dollars by selling bonds and stocks.

The ability to raise any money at all merits notice, as worries over dying dot-coms and weakening corporate spending have savaged stocks that provide Internet services.

This fall and winter brought a steep slide for the service providers: Exodus has dropped 70.6% since Sept. 1, rival Web host company



has dropped 70.8% and competitor


(NAVI) - Get Navient Corporation Report

has fallen 92% in the same period.

"They're trying to raise money in a environment where the market doesn't want anyone to raise money," said Cary Robinson of

U.S. Bancorp Piper Jaffray

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who rates Exodus a strong buy. Piper Jaffray has done no underwriting for Exodus.

After dropping 19% yesterday -- its third straight decline -- Exodus traded higher today on the announcement it was raising roughly $740 million through offering convertible debt and 13 million shares of stock priced at $18.50.

The cash will give Exodus some room to expand, as it distances itself from lagging hosters such as NaviSite and




Exodus closed up 69 cents, or 3.7%, to $19.44.

The irony is that Exodus is one of the strongest players in offering Internet services. NaviSite said it was laying off 7% of its staff and closing a pair of sales offices. It fell 22 cents, or 6.1%, to $3.38.

Another Web service provider,


( CFLO), dropped significantly after reporting a loss, staff cuts and the resignation of its CFO.

CacheFlow, which warned last week, reported a much wider loss than expected on its third-quarter earnings, which declined from the previous quarter. The company makes caching devices that give faster access to Web site content.

CacheFlow said its losses resulted from a weaker spending climate and a longer-than-expected purchasing cycle.

It closed down $3.94, or 28.1%, to $10.06.