Net Stocks Up On Bullish Outlook
Internet stocks climbed Tuesday, boosted by a positive profit outlook for some high-profile Net names.
Influential Morgan Stanley Dean Witter analyst Mary Meeker told her firm's sales force Tuesday morning that she expects Yahoo (YHOO), eBay (EBAY) and Amazon.com's (AMZN) quarterly earnings to be in-line or better than consensus expectations.
The analyst said fundamentals continue to be solid and despite volatility, the long-term outlook for those stocks is "phenomenal."
Meeker also said she disagreed with rumors circulating on the Street that Amazon's business is flagging.
A Yahoo analyst meeting scheduled for March 4 could also be a catalyst for the stock, said brokers who listened to Meeker's comments.
Among the Net movers: America Online (AOL) rose 3 11/16 to 90 3/16 in trading midday Tuesday. The largest online services provider split its stock 2-for-1, effective Tuesday. (Editor's note: CBS News is the broadcast news provider for America Online.)
Yahoo jumped 9 3/4 to 155 1/2, while Amazon rose 9 3/16 to 115 11/16. Shares of eBay gained 11 1/4 to 290. Lycos (LCOS) rose 4 5/8 to 94 1/4. Infoseek (SEEK) climbed 3 5/16 to to 72. Excite (XCIT) rose 6 to 99 1/2.
In corporate news, Trimark Holdings (TMRK) and Broadcast.com (BCST) said they teamed up to distribute movies over the Internet.
Trimark will license its library of films for distribution over the Internet via Broadcast.com, starting with 50 titles.The companies will also broadcast first-run movies, previews and live premieres. The companies will derive revenue from pay-per-view, electronic commerce and personalized marketing, among other strategies.
"We believe this deal will, for the first time, allow a significant library of theatrical motion pictures to be streamed on the Internet," said Mark Amin, chairman and CEO of Trimark, in a statement.
Shares of Broadcast.com jumped 8 15/16 to 79 1/4, while Trimark stock rose 1 5/32 to 8 3/16.
Internet software maker Inktomi (INKT) also rose, climbing 4/12 or 7.3 percent to 64 1/2.
Written By Stephanie O'Brien and Bambi Francisco, CBS MarketWatch