April 26, 2010, 3:41 PM

Online retail stocks are ahead 20% for the year after another strong week

The Internet Retailer Online Retail Index gained 4.4% last week, putting the index of 25 e-commerce stocks 20% up for the year. By comparison, the Dow Jones Industrial Average advanced 1.7% last week and is ahead 7.4% of the year, and the Standard & Poor’s 500 Index is ahead 9.2% for the year after gaining 2.1% last week.

Internet Retailer

It was another good week for e-commerce stocks.

The Internet Retailer Online Retail Index gained 4.4% last week, putting the index of 25 e-commerce stocks 20% up for the year. By comparison, the Dow Jones Industrial Average advanced 1.7% last week and is ahead 7.4% of the year, and the Standard & Poor’s 500 Index is ahead 9.2% for the year after gaining 2.1% last week.

Shareholders in CyberSource Corp. were the big winners, as the online payments specialist’s shares gained 34.5% last week, finishing near the $26 per share price that Visa will pay to acquire CyberSource in a deal announced last week.

Meanwhile, investors had sharply varying reactions to the quarterly earnings reports of two other major e-commerce players. Shares of Netflix gained 16.9% after the online video rental retailer reported a 25.3% increase in revenue and a 44.2% jump in net income in the first quarter. But investors were spooked by eBay’s tepid forecast for second quarter growth, and knocked 6.8% off the stock price of the online marketplace.

EBay was one of only three stocks of the 25 in the Online Retail Index to lose ground last week.

Here are the best-performing stocks last week in the Online Retail Index and the percentage price increase for each:

  • CyberSource, 34.5%
  • Netflix, 16.9%
  • American Greetings, 11.4%
  • 1-800-Flowers.com, 7.1%
  • GSI, 5.6%

Here are the Online Retail Index stocks that performed least well last week and the percentage change in stock price for the week:

  • eBay, -6.8%
  • Blue Nile, -2.1%
  • Systemax, -0.2%
  • ATG, +0.2%
  • Drugstore.com, +0.3%

The 25 companies in the Internet Retailer Online Retail Index are: 1-800-Flowers.com Inc., Akamai Technologies, Amazon.com Inc., American Greetings Corp., Art Technology Group Inc., Bidz.com Inc., Blue Nile Inc., CyberSource Corp., DemandTec Inc., Digital River Inc., Drugstore.com Inc., eBay Inc., GSI Commerce Inc., Keynote Systems Inc., LivePerson Inc., Netflix Inc., NutriSystem Inc., Overstock.com Inc., PetMed Express Inc., RealNetworks Inc., Shutterfly Inc., Systemax Inc., U.S. Auto Parts Network, United Online Inc. (owner of FTD.com) and VistaPrint Ltd.

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