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Lycos stocks go 2-for-1
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July 6, 1998: 7:54 a.m. ET
Web portal is the latest Internet company to offer stock split
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NEW YORK (CNNfn) - Lycos Inc. said Monday it is offering a two-for-one stock split, becoming the latest Internet company to announce a stock split as the sector continues its bull run on Wall Street.
Last week, shares of Internet service provider Earthlink Network Inc. (ELNK) and Web portal company Excite Inc. (XCIT) soared after the companies announced a two-for-one splits.
The week before that, shares of Atlanta-based Internet service provider MindSpring Enterprises Inc. (MSPG) jumped more than 18 percent after the company announced a three-for-one stock split.
The splits come in the wake of eye-popping surges in stock values for these Internet companies. And until the hot streak ends, investors are likely to see more Internet companies offering stock splits, according to some analysts.
"These stocks are mostly bought by retail investors," said Jonathan Cohen, director of Internet research at Merrill Lynch Global Securities. "When these stocks approach high double digits, they become less attractive to retail investors."
Lycos (LCOS) has seen its stock double since the beginning of the year. Other Internet companies have been enjoying gains in value as well.
(Click here to see a chart of Lycos' stock activity since January)
Earthlink, Excite and MindSpring shares all began the year trading in the 20s. On Thursday, Earthlink shares closed at 84, Excite closed at 98-15/16 and MindSpring ended at 104.
Lycos (LCOS) shares closed Thursday at 79-1/16, down 2-15/16. 
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