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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.

The thrill of the


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


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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


. "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.