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MindSpring shares soar
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June 25, 1998: 6:25 p.m. ET
But Intel and Microsoft had a rough session, dragging the Nasdaq under
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NEW YORK (CNNfn) - Shares of Internet service provider MindSpring Enterprises soared 14-5/16 to 94-7/8 as investors cheered plans for a stock split and analysts said the company might become a takeover target. Analysts credited the 17-percent jump to demand for the shares simply outstripping supply.
But the rest of the technology sector ended in the red. The Nasdaq composite fell 14.51 points to close at 1,863.25 after four days of strong gains.
Intel (INTC) fell 1-3/4 to 75-5/8. The company confirmed it has found flaws in its new Xeon processor. That chip is supposed to power a new range of high end servers. Intel said that shipments of those servers will be delayed by several weeks.
Hewlett-Packard (HWP) said its plans to ship a Xeon-based server remain on track. The company also announced it's cutting prices on Brio and Vectra PCs. H-P stock rose 5/8 to 60-3/8.
Microsoft (MSFT) shipped its Windows '98 on schedule, but the reception has been lukewarm. Some industry observers say most computer users shouldn't feel compelled to upgrade. Microsoft stock fell 3-3/8 to 101-9/16.
After several days of strong gains, shares of software maker Intuit (INTU) dropped 3-3/8 to close at 58-9/16.
Elsewhere in the software sector, The Learning Company (TLC) rallied 1-11/16 to 26-7/8. BT Alex.Brown upgraded the stock to a "strong buy."
That firm also upgraded Broderbund Software (BROD) to a strong buy. It rose 1-1/4 to 20-11/16. Earlier this week, The Learning Company inked a deal to buy Broderbund for $420 million in stock.
Shares of networking equipment maker 3Com (COMS) jumped 4-7/16 to 31-9/16, one day after the company posted earnings that beat Wall Street expectations.
But the rest of the networking stocks didn't fare so well. Tellabs (TLAB) fell 1-27/32 to 71-17/32.
Fore Systems (FORE) shed 1-1/16 to close at 25.
Internet service provider Earthlink (ELNK) fell 1-11/16 to 72-1/4.
Netscape Communications (NSCP) rallied 1-1/4 to close at 27-3/16.
America Online (AOL) rallied after a Brown Brothers Harriman analyst initiated coverage of the stock with a "long-term buy" rating. AOL shares gained 4-1/16 to 108
Pixar Animation Studios (PIXR) sank 2-3/4 to 55-1/4. UBS Securities said the stock had reached its price target.
VeriSign (VRSN), which provides security for e-commerce transactions, fell 1-3/4 to 40. Even so, the stock is still up $13 in the last ten days.
Adobe Systems (ADBE) rallied 2-5/16 to 44-3/8 on the day. After the bell, the software designer reported quarterly earnings that came in two cents per share above the consensus forecast. In after-hours action Adobe stock added 1-5/8 to 46. 
-- by staff writer Brendan Hasenstab
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