Aug 24, 2001 : Public Web Hosts - Last Week in Review

📅 August 24, 2001 - The tech-heavy Nasdaq gained some significant ground Friday, picking up close to 4% thanks to some encouraging news from tech bellwether Cisco Systems.
The networking specialists said it had seen business stabilize recently, igniting hope among investors that business in the tech sector was picking up.
The Nasdaq gained 73.75 points to close at 1916.72.
In other news Friday, the Microsoft Antitrust Saga began yet another chapter when the U.S. District Court assigned the case to a new judge.
Judge Colleen Kollar-Kotelly, appointed four years ago by Bill Clinton, will decide what type of remedies are required to ensure Microsoft does not abuse its monopoly on the PC OS market. It will also be up to Kollar-Kotelly to determine whether the company broke the law by packaging Internet Explorer with the Windows OS.
Web hosting firm Exodus Communications was a hot discussion topic Thursday after USA Today reported that the company was open to takeover bids.
CEO Ellen Hancock told USA Today that with the recent departure of three executives, the company had little choice but to consider offers for the company should anyone come forward.
"In today's environment, if a company did come forward with an attractive offer, the burden would be on us and our board to look closely at it," she said.
Shares in Exodus dropped on the news, and were sitting at $1.11 in late afternoon trading Friday.
A number of Web hosting companies introduced new value-added services and features on Wednesday, including market leaders Verio and Interliant. Verio said it was upgrading its line of Sun Microsystems' dedicated servers, and was becoming an early provider of Sun's new high-performance Netra X1 servers.
Meanwhile, Interliant unveiled its new INIT Remote Monitored Firewall service, a 24x7 offering that provides organizations with back-up support and expertise to ensure the security of their systems and data.
Canadian-based ISP and Web services provider Look Communications said Tuesday it would eliminate 125 jobs in a cost-cutting measure as the company tried to stabilize its finances. The company said it was also "continuing discussions with financial institutions and other parties" to secure financing.
And finally, two Web hosting companies said Monday that they had notice from the Nasdaq stating they were slated to be de-listed from the index.
Vancouver-based NetNation Communications said it had received a NasdaqStaff Determination dated Aug. 16, 2001 indicating the company fails to comply with the minimum $35,000,000 common stock market capitalization required for continued listing. The company was told its securities would be subject to delisting from the Nasdaq at the opening of business on Aug. 24, 2001 unless it appeals the determination.
Managed hosting provider firm Verado Holdings, Inc. said it had received a similar Nasdaq notice. The company is scheduled for a hearing on Aug. 30, 2001, and will continue to trade its stock until the Panel makes a determination.
Friday capped off a fairly good week for the Nasdaq, as the index slowly marched closer to the 2,000 level. Look for good things to happen next week if Cisco's optimism spreads throughout the rest of the tech sector.