STOCKS TO WATCH: Agency.com, Macrovision, Net2Phone and Rare Medium

The Internet consulting firm should be on the rise Tuesday after it posted a smaller-than-expected loss in its fourth quarter, losing $1.8 million, or 6 cents a share, on sales of $31.3 million.

First Call consensus expected it to lose 10 cents a share in the quarter.

Its shares closed up 5 1/2, or 13 percent, to 49 1/2.

The $31.3 million in sales represents 317 percent improvement from the year-ago quarter when it lost $3 million, or 11 cents a share, on sales of $7.5 million.

For the year, it lost $12.8 million, or 53 cents a share, on sales of $87.8 million versus a loss of $2.5 million, or 15 cents a share, on sales of $26.4 million.

Agency.com shares moved up to a 52-week high of 98 in December before falling to a low of 35 earlier this month.

First Call consensus expects it to earn 1 cent a share in fiscal 2000.

Macrovision shares will be on the move Tuesday after it rolled past analysts' estimates in its fourth quarter, raking in $4.2 million, or 22 cents a share, on sales of $12.8 million.

First Call consensus expected Macrovision, which develops technology to prevent the pirating of videos, to earn 18 cents a share in the quarter.

Its shares closed up 1 1/8 to 106 5/8 ahead of the earnings report.

Company officials also set a 2-for-1 stock split.

The $12.8 million in sales represents a 76 percent jump from the year-ago quarter when it earned $2.2 million, or 12 cents a share, on sales of $7.3 million.

Net2Phone will be worth watching Tuesday after its shares moved up 12 3/16 to 60 3/4 Monday after CNBC said America Online Inc. (NYSE: AOL) is in talks to buy a controlling interest in the Internet-based telephone company from IDT Corp. (Nasdaq: IDTC).

Citing sources familiar with the talks, CNBC said AOL may purchase IDT's remaining 48 percent stake in Net2Phone for terms that could approach $70 per Net2Phone share.

AOL, which holds a 5.4 percent stake in Net2Phone, declined to comment. Net2Phone also declined to comment.

Rare Medium posted a wider-than-expected operating loss in its fourth quarter, losing $20.2 million, or 50 cents a share, on sales of $17.6 million.

The company reported a loss from continuing operations of 24 cents a share before depreciation and amortization, equity in loss of investments carried on the equity method, and non-cash charges associated with convertible preferred securities. Total net loss was 73 cents a share.

First Call consensus expected it to lose 19 cents a share in the quarter.

The $17.6 million in sales marks a 719 percent improvement from the year-ago quarter when it lost $7.2 million, or 26 cents a share, on sales of $2.2 million.

Its shares closed up 1 5/8 to 49 1/2 Monday.