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

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To: Todd Daniels who wrote (5552)11/6/1997 10:40:00 PM
From: PAL  Read Replies (1) of 13594
 
AD-COMMERCE REVENUE **DOWN** 15% VS. Q4: $68m vs $80m

Very good point Todd. Sequential ad revenues declined from Q4/1997. I have gone back to August 7 postings and tried to find without luck the increase in membership in Q4.

In the news release AOL said that marketing for Q1 was curtailed in order to improve infrastructure. Is this a spin to cover up that sequential membership growth has slowed as well?

Since AOL is depending on Ad revenues to compensate the cost of memberships, it seems that RED INK will be on the horizon.

LOOK AT THE BALANCE SHEETS: CURRENT ASSETS $373.6 M
CURRENT LIABILITIES $556.6 M

HOW IS AOL GOING TO MEET ITS SHORT TERM OBLIGATIONS? ROBBING PETER TO PAY PAUL?????

Good Luck

PAL

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