Shares of online brokerage houses continue to rocket as bullishness about the rise of online trading spreads. The biggest movers include Ameritrade (Nasdaq: AMTD), which was up 11-1/4 to 106 in early trading today, and E*Trade (Nasdaq: EGRP), which was up 7-7/8, to a new high of 92-3/8.
The major rise in online trading stocks started on Monday after CS First Boston analyst Bill Burnham said that online trading climbed to approximately 450,000 trades a day during the first quarter of 1999, up 30 to 35 percent from the fourth quarter of 1998.
Burnham also predicted better-than-expected first quarters for Ameritrade and E*Trade.
But enough is enough. Ameritrade and E*Trade were both hovering around $60 before the news on Monday. The news is excellent, but not excellent enough to justify what’s happened this week.