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

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To: Tom Lu who wrote (4060)7/21/1997 2:57:00 AM
From: J.S.   of 13594
 
Tom,

Yes AOL is losing money. Yet, I could see them "reporting" a
profitable quarter perhaps well above analyst estimates. They
have cut down on advertizing and they may be coasting a bit.
Just like your gas mileage when you take your foot off the
accelarator goes way up momentarily only to go down quickly
again when you have to accelerate or stop, AOL may ride its
revenues from previous advertizing momentum at the risk of
having a very unprofitable quarter next or the one after next.
As someone mentioned, people will be looking at retention and
subscriber rates as well as ad revenues not just the standard
numbers.

The stock could well take a beating on besting estimates if some analysts think they have sacrificed future quarter results for
the most recent one. We shall see.

Joe
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