1/31/11

E-commerce stocks fight market headwinds to advance for the week

The Internet Retailer Online Retail Index gained nearly 0.5% last week.

Don Davis , Editor in Chief

While the broader stock market declined last week, the Internet Retailer Online Retail Index advanced modestly, as investors responded positively to financial reports from e-retailers 1800Flowers.com and Netflix.

For the week, the Online Retail Index, which tracks the stocks of 25 online retailers and e-commerce technology providers, gained 0.48% while the Dow Jones Industrial Average fell 0.38% and the Standard & Poor’s 500 Index declined 0.47%.

Leading the way among the e-commerce stocks was 1800Flowers.com, whose share price jumped more than 25% last week as it reported a modest increase in e-commerce sales and improvements in gross profit margin. Shares in Netflix also surged after the e-retailer reported a 29% increase in 2010 revenue.

However, the largest online retailer by sales, Amazon.com Inc., got a lukewarm reception from investors to its year-end financial report, despite a 40% growth in total revenue. Analysts were disappointed that expensive investments held Amazon’s profit increase to just under 25%, and the e-retailer’s shares declined 3.5% for the week.

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

• 1800Flowers.com, 25.7%

• Netflix, 19.7%

• Keynote Systems, 14.9%

• VistaPrint, 9.8%

• Bluefly, 6.5%

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

• Digital River, -10.7%

• drugstore.com, -8.0%

• DemandTec, -6.8%

• Overstock, -6.6%

• U.S. Auto Parts Network, -6.5%

The 25 companies in the Internet Retailer Online Retail Index are: 1-800-Flowers.com Inc., Akamai Technologies, Amazon.com Inc., American Greetings Corp., Bidz.com Inc., Blue Nile Inc., Bluefly Inc., 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), ValueClick Inc. and VistaPrint Ltd.

Topics:

1800Flowers.com, Amazon, Digital River, Dow Jones Industrial Average, Drugstore.com, Internet Retailer Online Retail Index, Keynote Systems, Netflix, Standard & Poor’s 500 Index

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