Emap’s Net news fails to impress weary City

first_img Previous Article Next Article Related posts:No related photos. This week’s stock market reviewLast week, UK magazine group Emap announced plans to spend £250m on buildingInternet ventures over the next three years, with the first tranche of £75m tobe spent this year. The company is optimistic that its proposed on-linestrategy will increase its revenues stream significantly. The key part of Emap’s proposals is investing in wholly-owned digitalbusinesses, as well as pursuing joint ventures. It also plans to buy relatedInternet businesses. But the announcement failed to impress the City and Emap’s stock price fellsharply. It is obvious that many analysts are becoming weary of media companiesannouncing their Web strategies.Freeserve shows strong growth but still has some way to goFreeserve has been trying hard to recover from its recent difficultiesfollowing the decision by its US rivals Alta Vista and NTL to cut theirInternet access charges. The company last week served a surprisingly good setof revenue figures to market analysts. It also revealed an increase in thenumber of its service users. The 36 per cent rise in revenues for the third quarter to January suggeststhat Freeserve may have a few aces to serve at its competitors. Freeserve’s active users are fast approaching two million but many analystsremain cautious about the company’s prospects. Although it remains the UK’slargest Internet provider, it is clearly not out of the woods yet since itsstock price suffered huge setbacks recently over fears that many of itscustomers might be lured away by price-cutting rivals. The City is becoming less bullish on the stock, mindful that the advent ofcheaper phone charges may prolong the date when Freeserve will becomeprofitable.”New economy” stocks are losing their lustreEvidence is emerging that investors are getting cold feet about “neweconomy” stocks. Many stocks are coming under pressure as agrowing number of investors switch back to the tried and tested old economystocks, particularly in the banking sector. Much of the gains achieved by the FTSE 100 last week came from value stocksthat are traditionally regarded as safe bets. And the Dow Jones IndustrialAverage recorded its single highest one-day rise, when it clocked up 500 pointson Thursday, due largely to good performance of old economy stocks.Winners and losers in LondonLast week some of the biggest casualties in London were KingstonCommunications, Sage and WPP. BP Amoco and Royal & Sun Alliance were amongthe best performers. BP Amoco’s strong performance was on the back of high oilprices and news that it has cleared the final hurdle to its $27bn takeover ofArco of the US. Comments are closed. Emap’s Net news fails to impress weary CityOn 21 Mar 2000 in Personnel Todaylast_img

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