The bubble refuses to burst. At least with Internet stocks, anyway.
Several of the Net's top dogs made a comeback at the end of a volatile week.
closed at 196 1/2, up 14 1/2, or 8%.
jumped 26 1/4. or 25%, to end at 134 1/4. And
added 21 1/2, or 8%, to 285 15/16.
The Net stocks seem to be falling into a similar four-steps-forward/one-step-back pattern, according to
BancBoston Robertson Stephens
Internet analyst Keith Benjamin. The recent drop in Net prices, says Benjamin, is merely a prelude to another rally.
"We believe the underlying fundamentals remain quite strong, which we further believe will enable the leading companies to grow into high valuations while the laggards fall," says Benjamin in his weekly Web report, published this afternoon. "In our view, the question is not whether or not the stocks should or will fall, but whether or not they will recover to higher levels."
Benjamin goes on to write that "monster stocks" tend to have fallen less and rebounded further than the market averages. In the Godzilla category, Benjamin includes
, Yahoo and
. AOL slipped 3/8 to 140 5/8.
Benjamin predicts more rebounding next week as AOL and Amazon report fourth-quarter earnings.
Shares of software company
slid steeply on talk fourth-quarter revenue will fail to beat analysts' expectations.
Credit Suisse First Boston
analyst Mike Kwatinetz wrote in a research note, "We expect Wind River to report 28 to 30 cents, versus our estimate of 29 cents. This quarter appears to be more back-end loaded than typical for Wind, and revenue is likely to come in at or slightly below our $38.6 million forecast." CS First Boston has no underwriting relationship with Wind River.
The Alameda, Calif. company, which helps companies develop embedded software, says its fourth-quarter earnings are due Feb. 25.
consensus estimate from also projects earnings of 29 cents per share.
But Kwatinetz said "the stock appears to have already overdiscounted this news," and maintains a strong buy on the stock. He said he is also keeping his fiscal year 2000 earnings-per-share estimate of $1.16 unchanged. That forecast is a penny below First Call's consensus.
Wind River shares ended down 17 1/4, or 35%, at 32 3/16, after hitting their lowest level since early October. Volume was heavy, with 8.5 million shares changing hands.