Shares of Internet infrastructure company Inktomi, which provides shopping and search services for portals and destination sites, climbed more than six percent in early trading today. The gain of 6-3/8 — to 106-3/8 — comes one day after the company reported that its first-quarter revenue more than tripled and its net loss declined.
After the markets closed on Thursday, Inktomi announced a net loss of $2.4 million or two cents per share. One-time costs related to the acquisition of WebSpective Software were excluded. Analysts had expected Inktomi to lose four cents per share. Inktomi lost $8.5 million in the first quarter of 1999.
Inktomi’s portal service business, comprised of its search, directory and shopping engines, contributed $140 million in revenue for this most recent quarter. The stock of Inktomi, which has customers including America Online, Yahoo! and Microsoft, is hitting new heights, and as more customers adopt Inktomi’s shopping engine and other services, the stock could keep rising. Today, Banc of America Securities upgraded Inktomi to strong buy from buy.