Net Stocks Find Friends Again

Investors are piling back into the sector after Monday's setback.
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SAN FRANCISCO -- Internet stocks have shown great resiliency after recent setbacks, and early indications this morning are that buyers are stepping back cautiously after Monday's slide.

Amazon.com

(AMZN) - Get Report

and

RealNetworks

(RNWK) - Get Report

, two stocks that set the tone for Monday's setback, were both trading higher early today. But despite these signs of health, the tech sector at large remains susceptible to profit-taking pressures.

Amazon.com stock was up 5 1/16, or 3%, at 156 in early trading after its 21-point decline on Monday. Shares of RealNetworks were up 8 11/16, or 4%, at 208 3/4 after also falling 21 points on Monday.

priceline.com

(PCLN)

, which will report its first-quarter results after the close today, has recovered some of its losses from yesterday and was lately up 9 1/8, or 7%, at 148 3/8.

Today's Internet IPO of note is

Mapquest.com

(MQST:Nasdaq), a company that provides driving directions on the Net. It was priced at 15.

Shares of

J.D. Edwards

(JDEC)

are slightly lower after the software company warned investors after the close on Monday. J.D. Edwards said it sees a second-quarter operating loss of more than $25 million due to lower-than-anticipated license fee revenue and a slowdown in demand for software as companies prepare for Y2K. It was trading down 1/4, or 2%, at 12.

In a research report released today,

Dain Rauscher Wessels

analysts wrote that the company's operating losses were much higher than expected, but they reiterated their strong buy rating on the stock and their price target of 26. While acknowledging that industry growth is being hurt by Y2K, they expect growth "will return to 25% growth levels in 2000 and beyond."

Software company

Information Advantage

(IACO)

was off sharply amid

speculation that the company will miss its first-quarter consensus estimate. Shares of Information Advantage were recently down 27/32, or 21%, at 3 13/16.

Also,

Extreme Networks

(EXTR) - Get Report

was suffering after

Morgan Stanley Dean Witter

began coverage of the computer network switching company with a neutral rating. The stock was off 6 3/4, or 13%, at 46 3/8 in early action.