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CNNfn tech stock report
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November 10, 1998: 4:27 p.m. ET
E-commerce optimism rules the day again as E-Bay surges 27 percent
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NEW YORK (CNNfn) - Internet shares Tuesday extended their impressive run as investor optimism over the prospects of electronic commerce during the holiday season continued to grow.
While other major technology sectors were mixed, Internet shares surged. Though the positive outlook of holiday shopping over the Internet is largely behind the recent upswing, analysts are quick to point out that wild turns in either direction are common to the sector.
"They have days like this," said Lise Buyer, Internet analyst at Credit Suisse First Boston. "This sector is really volatile. They have their ugly days and the good days, so it doesn't pay to read too much into what's going on."
There was plenty of activity going on around online auctioneer E-Bay Inc. (EBAY), which soared 27-7/8 to close at 130-1/4. Goldman Sachs set a 12-month price target of $150 on the stock.
E-Bay's 27-percent gain Tuesday comes on the heels of Monday's 19-point surge, meaning the company's shares have climbed 46-7/8, or 56 percent, in the last two days.
K-Tel International Inc. (KTEL) nearly doubled, surging 11-7/16 to 23 after the company signed a deal with Microsoft Corp. (MSFT) to include its online music and home video service on the Microsoft Network's shopping channel.
Rival online music retailers also enjoyed strong gains. N2K Inc. (NTKI) rose 3-3/4, or 67 percent, to 9-3/8, while CDnow Inc. (CDNW) climbed 3-15/16 to 12-3/8.
Even shares of Internet companies not directly related to e-commerce climbed higher. Yahoo Inc. (YHOO) jumped 12-1/16 to 176-13/16.
Excite Inc. (XCIT) closed at 51-1/2, up 4.
Internet content provider CNET Inc. (CNWK) surged 5-1/16 to finish at 49-3/8.
RealNetworks Inc. (RNWK) finished 5-11/16 higher at 47-3/4.
In the computer sector, Dell Computer Corp. (DELL) shares rose 1-5/8 to 70-5/8 after the company announced a deal to sell Eastman Kodak Co. (EK) digital cameras with its Dimension line of desktop computers.
IBM Corp. (IBM) also recorded strong gains, rising 4-3/8 to a new 52-week high of 155-3/4.
Intel Corp. (INTC) was the big winner among chip companies, rising 1-9/16 to 97-9/16. Intel's Steven McGeady held his ground under tough cross examination by Microsoft lawyers in Tuesday's antitrust trial proceedings.
Among software companies, Intuit Inc. (INTU) jumped 2-13/32 to 53-7/32 after computer maker Gateway Inc. (GTW) said it would include Intuit's small-business accounting software in its PC.
Developers of corporate enterprise software, however, continued to struggle. BMC Software Inc. (BMCS) fell 2-1/16 to 44-3/16; Citrix Systems Inc. (CTXS) tumbled 2-5/8 to 71-7/8; and PeopleSoft Inc. (PSFT) slipped 9/16 to 22-7/8. 
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