Stock Watch: CMGI Could Be Better Play

While Internet Capital Group was climbing on Monday, fellow Internet incubator CMGI (Nasdaq: CMGI), which invests in a wider variety of companies, was having an even better day. Shares of CMGI climbed 18-3/8 to 143-1/4 on Monday, a gain of nearly 15 percent. The rise in CMGI stock came after the company announced the launch of the [email protected] B2B Fund, a new venture-capital fund that will focus exclusively on business-to-business companies. The fund is expected to reach $1 billion in capital.

With a market value of more than $16.7 billion, CMGI can not be considered a bargain, but it boasts a longer track record than Internet Capital Group and success stories such as Lycos, Geocities and business-to-business site Chemdex. If you must invest in an Internet incubator, CMGI looks like the better value right now. If anything, Monday’s news was a reminder that Internet Capital Group is not the only company investing big money in business-to-business companies.

Leave a Comment

Please sign in to post or reply to a comment. New users create a free account.

LinuxInsider Channels