The thrill of the
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
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
were once again soaring, up 8 1/2 to 325 1/2.
was up 12 1/2 to 100 3/8,
was up 2 5/8 to 74 and
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
. "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
. "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,
, 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.