Online Brokerage, Bank Shares Soar
Bullish Wall Street pronouncements would be overkill when it comes to the Internet sector.
Wild buying drove many online bank and brokerage stocks dramatically higher again Tuesday, extending a rally that has doubled many of the shares in a matter of days.
NetBank, an Alpharetta, Ga.-based bank that serves about 15,000 accounts over the Internet, rocketed $76.52 to $235.02 on Nasdaq after the company announced a 3-for-1 stock split. The stock was at $53 as recently as March 23.
The online discount brokerages also were on fire again, apparently boosted in part by Charles Schwab’s announcement that it aims to hire 1,000 new employees.
Business is booming at Schwab, the biggest online brokerage, as more individual investors shift to trading stocks over the Net.
Schwab shares zoomed $15.50 to a record $150.50 on Tuesday on the New York Stock Exchange. The price was $65 in mid-February.
Some Schwab competitors have seen their stocks rise even faster in recent days. Ameritrade Holdings soared $31 to $173.25 on Tuesday, while E-Trade Group jumped $29.50 to $125.50 and Siebert Financial leaped $16.31 to $52.19.
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