SAN FRANCISCO -- Name the most exciting news item of late. (1)
finals; (2) the
meeting taking place today; or (3) the big move in
The third response is surely our choice, particularly after
raised the bar on AOL, reiterating its buy rating on the stock and upping its 12-month price target to 215 from 125. AOL was recently trading up 10 1/4, or 8%, at 142 5/8.
In its report, PaineWebber notes that AOL reaches over 50% of all U.S. online households and that both subscriber growth and international expansion have been solid. AOL has made smart strategic acquisitions, the report states, and the addition of
staff improves a "solid management team."
As for valuation, PaineWebber notes that there are 70 million households with cable and 30 million online households. If all of the cable households go online and AOL were to maintain its 50% penetration rate, it estimates that the 35 million subscribers would be worth around $187 per share. Add in the AOL network of properties, which includes Netscape's enterprise software business and Netscape's Netcenter, and you have a share price of $215, or a market cap of $230 billion.
In the News
Splits have been good news for many tech stocks, and
is no exception. A provider of high-maintenance Internet connectivity solutions, AboveNet has traded to a new high following the announcement of a 2-for-1 split. The stock has lately gained 20 1/2, or 25%, to 101 3/8.
National Discount Brokerage
are trading lower after the company announced earnings this morning for its third quarter ended Feb. 28. NDB posted earnings of 58 cents a share, up from 42 cents in its second quarter. There was no consensus estimate from
. The company noted that new active accounts in its online brokerage rose 38% and fueled revenue growth.
NDB was trading down 3 3/16, or 10%, at 30 5/16 after gaining 6 3/4 points on Monday ahead of the earnings numbers.
, which rose nearly 8 on Monday, were down 2 13/16, or 4%, at 63 11/16.
was trading down 2 3/8, or 9%, at 25 1/2.
are trading sharply higher today after the company announced last night that it was acquiring
, an Internet consulting firm, in a stock transaction. Sapient was recently trading up 5 3/4, or 9%, at 69 3/4.
(PCLN:Nasdaq) is the latest IPO to watch, and based on recent Net-related debuts, it should be trading far above the 16 level where it was priced on Monday. Priceline.com allows consumers to bid on airline tickets and hotel rooms. The companies activities ahead of the offering drew the attention of