The following is an AOL post, OCT. 1997. Since then it split again,
and is now over 100.
Thursday, Oct 23 1997 2:35PM ET
Reply # of 10618
***Why does everyone think that AOL is so expensive??***
Because the stock is trading at f-- $90 a share and by my calculations, is not projected
(even using optimistic projections) to have made any profit on a cumulative basis until
the year 2002.
It's trading at a forward, forward, P/E of nearly 100. . .
Based on it's price, investors must be assuming that AOL has for profit potential than
MSFT, INTC, or for that matter, about any other tech company on the planet, which I
find pretty amusing, since they can't even manage to put out an honest earnings report,
never mind make any money. . .
It's . . . aaaah heck, who cares? I guess it doesn't really matter. . .
One things I do get tired of, though is the argument that since many of the "bigger idiots"
buying this thing have made money, that the stock somehow isn't overvalued. A lot of
people make money in pyramid schemes, etc. A lot of people made money in Tulip
Bulbs and Florida Real Estate, etc. The point is that the fun and games will one day
come to brutal end and I, for one, will be happily looking onward, hopefully with a nice
pile of puts in front of me. For right now, though, I wish they'd announce a stock split so
the stock would move up another 15-20 points, just to put the icing on the cake.
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