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Technology Stocks : America On-Line: will it survive ...?
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To: steve lipson who wrote (4807)9/15/1997 11:44:00 AM
From: Andre Lukas   of 13594
 
Todays' The Wall Street Journal page B4:

AOL Hits Top On-Line Hill With Compuserve Deal
Now Observers Wait to See If Market Dominance Can Translate Into Dollars

Very good article. It shows how Revenues are rising but Earnings have stalled.

In comparison of advertisement, vis a vis against network TV's, AOL can have maximum 400,000 members log on at once because of limitations in AOL network. OTOH TV advertisers can reach as many as 80 million viewers. Therefore "AOL obstacles to attract more advertisers and on-line merchants remain daunting. While big name advertisers can be seen all over cyberspace, those appearances usually reflecvt low-cost experiments, not deducated on-line budgets. Some ads even appear without charge as part of barter deals"

That article might partly account for the drop in AOL stock price.

Good Luck to all.

Andre
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