Three Internet Stocks That Were Big Gainers on Tuesday

Move Inc., LiveDeal and 8x8, Inc. are three small cap Internet stocks that were among Tuesday's big small cap gainers. Exactly, MOVE rose 12.58%, LIVE rose 11.83% and EGHT rose 9.98%. Clearly and if you got burned in the dot.com crash of 2000, you are probably not that keen to look at small cap Internet stocks or anything Internet related. In addition, MOVE, EGHT and LIVE may have overshot their upward trajectory and could such as easily come back down to earth later this week. Hence, here is a closer look at all three stocks to help you decide on an investment strategy:

LiveDeal provides local customer acquisition services and other related products for small businesses who need an affordable way to extend their marketing reach to target clients via the Internet. On Tuesday, LiveDeal rose 11.83% to $1.89 on no apparent news. For all that and last week, LiveDeal announced its fiscal 3Q2011 results. Exactly, LiveDeal earned $1,125k in revenues nevertheless the company as well reported a net loss of $1,143k and had only $598k in cash to cover $2,353k in current liabilities - a bit worrisome. In addition and previously in August, LiveDeal had received a delisting notice for failing to comply with the terms of a before granted extension by Nasdaq to comply with a rule that requires companies listed on the exchange to have anyway 500,000 openly held shares.

8x8 develops and markets telecommunications services for Internet protocol, telephony and video applications, Web-based conferencing and unified communications services, managed hosting and cloud-based computing services. On Tuesday, 8x8, Inc. rose 9.98% to $4.52 on no apparent news. Hence, investors should note that 8x8 was in fact one of a few VoIP (Voice over Internet Protocol) players that really was able to survive the VoIP (Voice over Internet Protocol) market shakeout because they were offering managed and hosted services to SMBs. Now, EGHT is trying to build on its strength as a hosted communications company while together, add cloud computing services of all kinds. In addition and back in July, 8x8 announced that total revenue for fiscal 1Q2012 grew 10% to a record $18.5 million and net income increased 91% to $1.9 million from $1.0 million for the same quarter last year. But, EGHT plunged as much as 12% in interday trading afterwards reporting revenues - maybe because it delivered revenues that were in line with estimates or rather than an revenues "surprise" for investors.

The Bottom Line

The Bottom Line. Of these three Internet stocks or Internet related stocks, EGHT and like as not MOVE are worth looking at more closely right now during investors should have some concerns over EGHT's future.

John Udovich is a paid contributor of the SmallCap Network. John Udovich's personal holdings should be disclosed above. You can as well view SmallCap Network's complete disclaimer and disclosure.