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

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To: Muizz M. Kheraj who wrote (583)11/13/1996 4:31:00 PM
From: Zoltan!   of 13594
 
Since you exhort others to think, it would help if you lead by example.

It takes little to nuke your indeed "simple" calculations. You assume 100% of users will remain on the unltd plan. AOL has stated that 90-95% of its users (probably those other than the 50 hr free members) use their service less than 5 hrs/month. While that may go up, your figures are bizarre.

Did you know that AOL spent $356 for each net subscriber gain this past quarter? Did you think they will ever make that money back?

As for projections of AOL profitability (oxymoron alert!), let me paraphrase Cowen's analyst on same, "everyone can hope".

Regards
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