RealNetworks Lonely at the Top as Profit-Taking Hits Net Stocks
SAN FRANCISCO -- This afternoon RealNetworks (RNWK) - Get Report is the rare Internet stock that's up.
The gain in RealNetworks came despite news that
Microsoft
(MSFT) - Get Report
had formed a division focusing on streaming media, a development that could affect RealNetworks' business.
Microsoft said its new division will focus on technology for applications ranging from music, radio, news and events to online training and corporate communications. Microsoft already competes with RealNetworks with its Windows Media Player.
RealNetworks was up 9 3/8, or 5%, at 190 1/2. Microsoft was down 3/4, or 1%, at 83 1/4.
RealNetworks is expected to announce the launch of its new RealPlayer next week, which could be providing some strength, said Dan King, analyst with
LaSalle Street Securities
.
Net Sector Online
The Net sector moved in synch with
America Online
(AOL)
following the company's earnings report Tuesday. AOL has been choppy throughout the session, trading in a range between 145 and 157. It opened lower, recovered from its early slide, but has since moved lower again as profit-taking took hold.
Among the biggest losers were companies that, like AOL, have reported earnings over the past few days; traders were taking profits following pre-earnings run-ups.
DoubleClick
(DCLK)
, which dropped sharply on Tuesday after matching earnings estimates, was off 11, or 7%, at 137 1/2.
eBay
(EBAY) - Get Report
beat estimates and closed higher on Tuesday. It was down 12 3/4, or 6%, at 196 1/2. And
MindSpring Enterprises
(MSPG)
, an Internet service provider, was down 10 1/4, or 9%, at 106 1/16 despite besting earnings estimates.
BMC Software
(BMCS)
was trading higher after besting earnings estimates by 2 cents Tuesday.
Donaldson, Lufkin & Jenrette
upped its 12-month target price on the stock to 50 from 45. It was up 2 3/8, or 6%, at 44 1/8. BMC is not presenting at this week's
Hambrecht & Quist Technology Conference
but was a topic of
conversation there.
Shares of
Exodus Communications
(EXDS)
gained following its presentation at the H&Q conference. It was up 2 7/16, or 3%, at 93 1/2 after trading to a session low of 87 1/4.
TSC
is providing
coverage of the conference throughout the day.
