SAN FRANCISCO -- broadcast.com (BCST) beat Wall Street estimates for its first-quarter results.
The company, which recently agreed to be acquired by
, lost 11 cents a share for the first quarter. Excluding charges related to its purchase of
, the company posted a loss of 9 cents a share, or three cents better than the 12-cent loss estimated by analysts surveyed by
. The company reported revenue of $10.3 million in the quarter, up from $4.5 million in the first quarter of 1998 and $7.6 million in revenue reported in the fourth quarter.
The broadcast.com report shouldn't hurt Net stocks, which continued to ramp today despite weakness in some of the PC and chip makers after Compaq's earnings warning on
Friday. Compaq finished the day down 6 3/4, or 22%, at 24 3/16. The stock suffered from a number of analyst downgrades and fell as low as 23 1/8 at one point.
But it was far from an industrywide shakeout. There already were rumblings that Compaq was having a rough quarter back in late
February, so the announcement, while unexpected, was not a shock. And some analysts said Compaq's woes were not industrywide.
"I think investors are looking at this as an isolated situation with Compaq," said Jim Herrick, managing director of trading with
Robert W. Baird
The PC sector was weak:
closed down 1 3/4, or 4%, at 41 13/16.
closed down 2 7/8, or 1.5%, at 183 7/16.
closed down 2 7/8, or 4%, at 69 7/8.
reports earnings on Tuesday and in advance of the earnings, the company was downgraded by
BancBoston Robertson Stephens
. It closed down 4 3/16, or 6%, at 61 1/4. There seem to be conflicting opinions regarding Intel's report and whether the company will hint at a slowdown down the road.
Net stocks were among the strongest in the tech sector, with a 20-plus point gain seen in a number of companies. There was some talk that Compaq's concerns, which were blamed to a large degree on ultracompetitive pricing, actually could be positive for the Internet sector in general. As computers become cheaper, more people buy them and get on the Net.
TheStreet.com Internet Sector
index closed up 58.5, or 8%, to 790.44.
Herrick said the run in Internet stocks should continue unless there is a negative earnings surprise. He said funds, which once shunned the Net stocks, are now active participants to keep returns strong. Indeed,
Liquidity Trim Tabs
reported today that approximately $7 billion had been put into equity funds over the five days ending last Thursday, a huge number considering it comes around tax time.
Online brokerages remained red hot amid optimism over upcoming earnings numbers.
, which reports earnings later this week, closed up 26 11/16, or 23%, at 142 1/4.
National Discount Brokerage
closed up 15 7/8, or 34%, at 62 1/2, while
J.B. Oxford Holdings
closed up 2 5/16, or 19%, at 14 3/4.
Among the Net stocks in the news was
after announcing an agreement to provide technology for IBM. RealNetworks closed up 39 1/2, or 19%, at 247.
traded higher after DoubleClick announced it had selected AboveNet to operate computers that control its Web service. AboveNet closed up 45 3/8, or 43%, at 150 1/4, while DoubleClick closed up 17 5/8, or 14%, at 146 1/2.
A number of other Net stocks remained heavy momentum plays. Among them were
, which closed up 32, or 22%, at 179 1/2, and
, which closed up 39, or 33%, at 158 1/2.
Internet venture capitalists also remained a favorite play.
closed up 37 5/8, or 14%, at 302, while
Point West Capital
closed up 9 points, or 58%, at 24 5/8.
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