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No. of Recommendations: 1
Research prepared by an entity that was acquired by BancBoston Robertson Stephens Inc.
Revenues of $9.0MM were $1.4 MM ahead of our $7.6MM estimate. EPS excluding amortization of ($0.15) was better than our estimate of ($0.36).

The revenue upside was driven by better-than-expected growth in both eCommerce and advertising revenues, in our view. In addition, Xoom ended June with 10.3MM registered members versus our 10.0MM estimate.

We believe that the merger of Xoom, Snap and NBC Internet's properties will close during Q4. NBCi is expected to invest heavily in the development of the Snap brand to add to its value-added content, proven advertising model and successful eCommerce strategy. We also believe that NBCi's access to the NBC peacock logo positions the company to be a leading entertainment content site.

Xoom.com's stock is trading at 40% below its 1999 high. We believe that the stock will continue to move higher with the impending closing of the merger followed by announcements of further strategic partnerships and acquisitions.

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