Stock Watch: Go2Net Announces Strong Earnings

Shares of Go2Net (Nasdaq: GNET), an online destination site that includes the Metacrawler search engine, the Hypermart hosting service for small businesses and the Silicon Investor financial site, climbed 5-1/16 to 97-1/16 on Wednesday. The gain comes one day after the company announced first-quarter earnings that handily topped analysts’ expectations. After the markets closed on Tuesday, Go2Net reported earnings of $7.2 million, or 16 cents a share, compared to estimates of seven cents a share.

Go2Net has shown a profit for four consecutive quarters, and its ability to sustain profits is notable in an Internet world where companies often see their losses grow or alternate between profitable quarters and money-losing ones. Even after Wednesday’s gain, Go2Net is worth less than $3 billion, making it tiny compared to competitors like Yahoo! and Lycos. Still, Go2Net stock looks like it could have some significant upside. On Wednesday, U.S. Bancorp Piper Jaffray upgraded Go2Net from buy to strong buy.

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