SAN FRANCISCO -- It's been proven time and time again -- news about Internet companies does not have to be groundbreaking to move stocks.
The spark for today's Net stock rally could be linked to initiation of coverage by new
Internet analyst Alan Braverman. Braverman started coverage on nine Internet stocks with buy ratings; all nine traded higher today. A similar move in Internet stocks was seen after
analyst Henry Blodget initiated coverage of Net stocks earlier this
Braverman noted that
are "must own" blue-chip Internet stocks and that a "premium" must be paid to invest in the Internet leaders. For Amazon.com, he placed a 12-month price target of $175 and for AOL, a 12-month target of $155.
Amazon.com closed 12 1/8 higher, or 10%, at 135 13/16 and AOL closed 8 5/8 higher, or 7%, at 125 3/4.
, another stock he rated, closed 18 1/2 higher, or 12%, at 179.
But Braverman can't take credit for gains in
. The online auctioneer closed 12 5/8 higher, or 9%, at 158 after announcing a marketing agreement with AOL.
did just fine without the nod from Braverman, though it did get help from
Hambrecht & Quist
, which upgraded the stock to strong buy from buy, and from
ING Baring Furman Selz
, which initiated coverage of the stock with a buy rating and a nine-month price target of 175. It closed 28 1/4 higher, or 23%, at 150. Volume in the stock was close to 2.9 million, compared with the three-month average of 832,000.
Under the Micronoscope
certainly didn't disappoint when it reported earnings
Wednesday, but it still closed 4 3/8 lower, or 8%, at 47 5/8. Earnings expectations may have been built up too high for the company after Micron blew away estimates in the previous quarter, and investors may have been looking for more positive news about the future.