Internet Stocks Surge Higher

By CBSNews.com staff CBSNews.com staff

January 8, 1999 / 1:05 PM EST / CBS MarketWatch

Ardor for Internet issues was unabated Friday as many stocks, posting double-digit gains, were lifted to their sixth straight day of record gains by raging confidence in the sector's future.

The Goldman Sachs Internet Index leaped 3.4 percent, while the Amex Internet Index rose 2.3 percent, also record highs.

Adding to the fervor, the U.S. economy continues to pump out jobs at an impressive clip, quashing concerns that it will slow anytime soon.

The Nasdaq halted trading in Broadcast.com (BCST) shortly before noon Eastern time after a 96-point rise in the stock. The stock eased back after trading resumed about two hours later, cooling to about 182. The stock rose 65 1/2, or 49.6 percent, closing at 197 1/2.

Online retailer Amazon.com (AMZN) shares gained amid a fresh chorus of kudos from Wall Street and news that the company has bought a new distribution center to reduce delivery time to customers and give the company more space to store inventory.

"Amazon's stock, splitting 3-for-1 this week, showed remarkable resilience from threatening revenue news, suggesting a very healthy demand for Amazon and for the entire group of stocks, even at valuations that appear to reflect very high expectations," said BancBoston Robertson Stephens analyst Keith Benjamin in his weekly Web report.

As evidence of its rapid expansion, Amazon said it will open a "highly mechanized" distribution center in Nevada that will reduce standard shipping times to key markets in the western United States by a full day. Shares rose 2 7/8 to close at 160 1/4 after hitting a high of 199 1/8. More than 33 million shares traded hands.

In other news, GeoCities (GCTY) said it'll license and integrate e-commerce technology from privately held software company InterWorld. The technology will be used in the next generation of GeoShops, GeoCities' online merchant sites. Shares of GeoCities rose 14, or 34.3 percent, to 54 7/8.

Lycos (LCOS) gained 20 1/4, or 28 percent, to 91 3/4.
Yahoo! (YHOO) shares jumped 27 1/2 to 347 1/2.
Network Soltions (NSOL) shares rose 21 3/4, or 10 percent, to 238 1/4.
MindSpring Enterprises (MSPG) climbed 5 1/8 to 93 1/8.
E-Trade Group (EGRP) was up 3 9/16 to 67 5/8.
Ameritrade (AMTD) was up 1 9/16 to 36 1/16.
America Online (AOL) slipped 2 1/8 to 145 3/4
Online auctioneer uBid (UBID) dipped 1/4 to 119.
eBay (EBAY) fell 5 5/8 to 292 3/8.
Sports site SportsLine USA (SPLN) sprinted ahead 43 percent, rising 8 3/8 to 28.
Shares of Christian-oriented Web company Didax (AMEN) gained 52 percent, getting a boost from its Crosswalk.com's recognition as "best Christian Web site of the year" by an organization called Best of the Christian Web. The stock climbed 4 3/4, to 13 7/8.
Online audio provider AudioHighway.com (AHWY) gained 35 percent, or 3 1/2, to 13 3/8.
CMGI (CMGI) surged 30, or 18 percent, to 200 1/4
Cybercash (CYCH) added 2 7/16 to 21 3/4.
CNET (CNET) jumped 6 3/8 to 62 3/8 amid general bullishness in the Internet group, and after BancBoston Robertson Stephens reiterated its "buy" rating on the publisher of News.com and other Internet sites.

Written By Stephanie O'Brien