TAKING THE PULSE: It has become readily apparent over the past several months that Internet companies have not been immune to the economic downturn, although some have fared better than others. Many have moved to cut costs as they sharpen their focus and build for future growth. First-quarter results are expected to be modest given weak consumer spending and forecasts indicating that Internet advertising could fall by as much as by 5%, the first contraction in since the dot-com bubble burst, according to market research group IDC.

Meanwhile, online retailer Amazon.com Inc. (AMZN) is looking to profit from a shift in consumer spending habits to Internet shopping sites, while eBay Inc. (EBAY) is hoping to better develop its online identity.

COMPANIES TO WATCH:

Google Inc. (GOOG) - reports April 16

Wall Street Expectations: Analysts surveyed by Thomson Reuters project the Internet-search giant to report per-share earnings of $4.95 on revenue excluding traffic acquisition costs of $4.09 billion. The prior year's net income was $4.12, or $4.84 excluding stock-compensation costs, on revenue including $1.49 billion of TAC, which is commissions paid to marketing partners, of $5.19 billion.

Key Issues: Google during the quarter abandoned efforts to sell radio and print ads as it focuses resources on more promising products. Speculation is growing Google may strike a partnership with micro-blogging phenomenon Twitter Inc. The company also took its first step toward selling ads targeted to viewers' likely interests, a controversial type of Web advertising its competitors already offer.

Yahoo Inc. (YHOO) - reports April 21

Wall Street Expectations: The Internet portal is seen posting per-share earnings of 8 cents on revenue excluding TAC of $1.2 billion. A year ago, the company reported per-share earnings of 37 cents amid a gain from Alibaba.com's initial public offering and $1.82 billion of revenue, which includes $465.5 million of TAC.

Key Issues: Yahoo has been struggling with a dramatic slowdown in display-ad spending, a key market in which Yahoo is more heavily exposed than Google or Microsoft Corp. (MSFT). Chief Executive Carol Bartz, who took the helm of Yahoo in January, has reorganized management and said she intends to build the company for the long term and make it more viable as an independent.

eBay Inc. (EBAY) - reports April 22

Wall Street Expectations: Analysts project earnings of 33 cents a share on revenue of $1.95 billion, down from 34 cents and $2.19 billion, respectively, a year earlier.

Key Issues: After a poor holiday season, the online retailer has said it will focus on its online-marketplace business for used and overstocked goods rather than the retail market for new goods. EBay, which has been losing market share to rival Amazon, has struggled with a shift in consumer spending away from the novelty of online auctions to fixed-price sites.

Amazon.com Inc. (AMZN) - tentatively set to report April 23

Wall Street Expectations: Analysts forecast per-share earnings of 31 cents on revenue of $4.75 billion. A year ago, the e-commerce company reported earnings of 34 cents and revenue of $4.13 billion.

Key Issues: Amazon continues to expand the number of product categories it offers to consumers. It recently challenged GameStop Corp. (GME) by introducing a used-game trade-in program. Amazon is also girding for battle with eBay's dominant PayPal online-payment service, where eBay has said its greatest growth potential rests. Amazon in February unveiled a new version of it Kindle e-book reader.

(The Thomson Reuters financial estimates and year-earlier net may not be comparable due to one-time items and other adjustments.)

-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com