Net Stocks Finish Strong, and AOL Beats Estimates - TheStreet

Net Stocks Finish Strong, and AOL Beats Estimates

The Internet service provider reported earnings of 15 cents a share, which will likely allow the sector's momentum to continue tomorrow.
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America Online

(AOL)

became the latest Internet company to beat earnings estimates, and its numbers should allow the Net sector to continue tomorrow where it left off today.

The Internet service provider posted earnings of 15 cents a share for its fiscal first quarter, besting the 13-cent estimate from

First Call/Thomson Financial

and matching the whisper number. It compares with year-ago earnings of 4 cents a share. AOL reported net income of $184 million, compared with $50 million a year ago. Account growth of nearly 1.1 million was even above the 950,000 that analysts had anticipated. Ahead of the numbers, AOL closed up 5 1/16, or 4%, at 120 5/16.

Net stocks were in rally mode much of the day, buoyed by a strong earnings

report Tuesday from

Microsoft

(MSFT) - Get Report

along with solid earnings numbers from a number of Net

stocks.

TheStreet.com Internet Sector

index finished the day up 30.08, or 4.4%, at 709.52. Microsoft finished up 5 15/16, or 7%, at 92 1/4.

Among other bellwethers,

eBay

(EBAY) - Get Report

finished up 12 1/4, or 9%, at 145 7/8. On Tuesday, the online auctioneer began a high-end auction site called

Great Collections

.

Yahoo!

(YHOO)

climbed 5 9/32, or 3%, at 180 5/32, and

Amazon.com

(AMZN) - Get Report

ended up 3 7/8, or 5%, at 80 1/2.

Venture capitalists were also on fire based on strength throughout the sector.

Internet Capital Group

(ICGE)

ended up 8 5/8, or 9%, at 101 1/16, and

CMGI

(CMGI)

finished up 5 1/2, or 6%, at 102 1/2.

Other companies that reported Tuesday ended the day with mixed results.

Copper Mountain Networks

(CMTN)

closed down 4 7/32, or 4.6%, at 88 17/32, despite besting estimates. It also said 9.2 million shares that were in lock-up would become available next week.

RealNetworks

(RNWK) - Get Report

, which

reported a profit for the first time, closed down 2 15/16, or 3%, at 100 7/16. The stock saw profit-taking after running up into the report.

Excite@Home

(ATHM) - Get Report

matched earnings estimates, but investors cheered a 222,000 increase in subscribers in the quarter. It closed up 2 3/16, or 5%, at 42 13/16.

Web site designer

Razorfish

(RAZF)

soared 11 7/16, or 22%, to 63 5/16 after beating earnings estimates by a penny.