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Internet Stocks Surge on Strong Earnings and Market Performances

Strategic Insights

— 1 min read

The Nasdaq Stock Market saw significant gains Tuesday, particularly in the internet sector, following strong performances from several leading companies. TheStreet.com, a 3-year-old internet news service, made a spectacular debut with its stock price shooting up to $60 from an initial price of $19, valuing the company at $1.41 billion. The company's investors include prominent media groups such as The New York Times Co. and News Corp.

Key Takeaways:

  • TheStreet.com's market value reached $1.41 billion after its stock surged to $60 from $19 in its first day of trading.
  • The company's backers include The New York Times Co. and News Corp.
  • Ryan Jacob, manager of the Internet Fund, sees a large market opportunity in financial news distribution on the internet.
  • Motorola shares jumped 4.9% to $85.87 1/2 on the New York Stock Exchange after announcing the sale of its Semiconductor Components Group for $1.6 billion.
  • Immunex Corp.'s shares rose 24.8% to $142.31 1/4 after the company announced positive results from a clinical trial of its marketed drug, Enbrel.
  • Wal-Mart Stores reported stronger-than-expected first-quarter profits, resulting in a 4.5% gain in its shares to $47.31 1/4.
  • OfficeMax shares gained 9.5% to $11.25 after the company's earnings strength.
  • Dayton Hudson, another discounter, rose 2.8% to $65.06 1/4 ahead of its earnings release next Tuesday.

Statistics:

  • TheStreet.com's stock price increase: $41 ($60 - $19)
  • Market value of TheStreet.com: $1.41 billion
  • Share price of Motorola: $85.87 1/2 (up $4 from its previous value)
  • Immunex Corp.'s share price increase: $35.31 1/4 (24.8% gain)
  • Wal-Mart Stores' share price increase: $2.12 1/2 (4.5% gain)
  • OfficeMax's share price increase: $1.06 1/4 (9.5% gain)
  • Dayton Hudson's share price increase: $1.81 1/4 (2.8% gain)

Sources:

  • "Internet Stocks Get a Boost". Forbes.
  • "The Street.com's market value reaches $1.41 billion after stock surge".
  • "Motorola, Immunex, Wal-Mart Stores, OfficeMax, and Dayton Hudson earnings results".
  • "The New York Times Co. and News Corp. invest in TheStreet.com".

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