Nothing but Net: Blue-Chips Shine Where Blue Devils Faded

AOL and Amazon advance, yet again.
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SAN FRANCISCO -- The rich keep getting richer in the Internet sector.

Blue-chips

America Online

(AOL)

and

Amazon.com

(AMZN) - Get Report

were once again among the day's big winners.

America Online added 12 1/8, or 9%, to close at 144 1/2. In a research report,

PaineWebber

upped its target price on AOL to 215, saying the stock is still "undervalued and its potential has yet to be fully realized." AOL and

Sun Microsystems

(SUNW) - Get Report

also announced details of their alliance to develop e-commerce software products.

A day after it said it was entering the online auction business, Amazon.com continued to rise, getting some help from an obscure firm called

Pacific Crest Securities

. In a research report, Pacific Crest said that Amazon "can resemble a 'Wal-Mart of the Web' in less than 10 years and its shares could see 800% upside over that time." That would leave the stock at 1,350.

Amazon.com closed up 15 1/16, or 10%, at 164 11/16.

eBay

(EBAY) - Get Report

, which stands to lose the most from competition from Amazon.com, closed down 10 21/32, or 7%, at 137 1/8.

The report notes that revenue at Amazon.com is expected to expand more than 70% annually over the next three to five years, though profitability as always remains a question mark for the e-commerce behemoth.

There were some other big movers, most notably

AboveNet

(ABOV)

. The company set a 2-for-1 stock split, payable May 7 to shareholders of record April 14. That was enough to send shares of the provider of Internet connections for e-commerce soaring. It closed up 25 15/16, or 32%, at 106 13/16.

And with the NCAA basketball tournament finally over, IPO madness replaced March Madness as

priceline.com

(PCLN:Nasdaq) soared in its debut. Priceline was priced at 16 Monday, but soared to a high of 85 before closing at 69. That was 12 points below its opening price of 81.