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

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: James F. Hopkins who wrote (3838)	7/3/1997 6:58:00 PM
From: Richard Zeng	of 13594

New game of AOL: the assumption behind the recent AOL price run-up is that AOL is in a great transition to be a global franchise. The problem with AOL before was that AOL capital expenditure for membership growth can not get paid off by a fixed base of membership fee. The only asset AOL holds is the installed base of users and the content added to the interface. The brokerage firms believe that AOL is well on its way to capitalized on the asset, and to continue adding asset to its content by more and more partnership with media/content companies. So here is the dream for the analyst. Like WSJ, AOL is expected to collect royalty fee and revenue on a percentage of the captical investment made by other companies, such as ads, car sales, book sales, or content sales. This is a wonderful business. This assumption is validated only when AOL is able to generate a main portion of revenue on royalty fee without any additional capital spending from AOL itself. Can this assumption be true for AOL? Richard

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next