Deal-Sparked Frenzy Has Net Stocks Feeling Right @Home

Internet stocks are ramping once again as investors race to get into the next takeover target.
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The thrill of the

@Home

(ATHM) - Get Report

-

Excite

(XCIT)

deal has spilled over to other portal stocks and is pushing the high-tech sector higher.

TheStreet.com Internet Sector

index was up 44 points, or 8.8%, while the

Nasdaq

was up 38, or 1.6%. Excite was leading the way, up 33 points, or 50%, to 101 1/4, but the wealth is being shared by all the portal companies. Shares of

Yahoo!

(YHOO)

were once again soaring, up 8 1/2 to 325 1/2.

Lycos

(LCOS)

was up 12 1/2 to 100 3/8,

Infoseek

(SEEK)

was up 2 5/8 to 74 and

CNet

(CNET) - Get Report

was up 10 to 82.

"Clearly Lycos is going to be in someone's gunsight, and Infoseek as well," said Phil Leigh, vice president of Internet research with

Raymond James

. "Traditional media companies are lurking, and they have to do something."

James said the deal, in which @Home agreed to pay a roughly 60% premium for Excite, "legitimizes the business."

The merger also creates a company that James compares to industry leader

America Online

(AOL)

. "If you combine @Home and Excite, you get a creature that looks like AOL except it has broadband connections, though it is not as fully developed as an online community."

MarketWatch Stays on Fire

Friday's big mover,

MarketWatch

(MKTW)

, has cooled off somewhat. MarketWatch raced to a high of 117 1/8 in early trading, still below Friday's 130 high, but has since slipped and was up 1 1/8 at 98 3/16.