America On-Line: will it survive ...? Message Board

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Technology Stocks : America On-Line: will it survive ...?

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To: grogger who wrote (172)	9/28/1996 7:45:00 PM
From: Art Stone	of 13594

<<I like your analogy to McDonald's with AOL. I think that is a very valid pointI like your analogy to McDonald's with AOL. I think that is a very valid point>> If it was a valid analogy, then AOL would be selling for MCD's 23 PE, instead of AOL's 139 PE (techstock's numbers).. That would put AOL at about $5 3/4. AOL's "value" is based not on its day to day routine "burger-flipping" performance and profitability, but on speculation on future subscriber growth and impoving gross margins. Once a market gets saturated and the online/internet is a "mature" market, getting one more percent of market share will become extremely difficult and expensive..

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