First of, restating subscriber numbers hasn't happened about 73 times, or even close to that. In fact, I can't remember the last time subscriber numbers decreased.
Also in the news...
Friday November 7 11:28 AM EST
AOL skids, analysts see buy opportunity
NEW YORK, Nov 7 (Reuters) - Shares in America Online Inc slid in early trading on Friday, following the company's release of disappointing results late Thursday.
AOL shares fell 2-7/8 to 76-1/2 in composite trading, which reflected some late activity on Thursday after the copany's earnings release. On the New York Stock Exchange, which was already closed when AOL reported numbers, the shares were off 7-1/2 points from their closing level of 84.
While AOL's earnings of $0.12 per share before a gain were in line with Wall Street estimates, analysts said revenue growth in some areas fell short of expectations.
Lehman Brothers analyst Brian Oakes, who reiterated a buy rating on the shares Friday morning, said that any weakness in revenues appeared to be linked in part to a conscious move by AOL to adopt more conservative accounting methods.
''While other revenues were disappointing ... it was due to AOL's own moves to halt merchandise telemarketing, increase bad debt allowance and more conservatively account for advertising deals,'' Oakes said in a note provided by Lehman.
''If there is any weakness in the stock, we would be aggressive buyers,'' he said.
Analysts have watched AOL's ability to grow ''other revenues,'' or revenues from sources other than subscription fees, because they represent an important source
of growth now that the company has shifted to a flat monthly fee structure for its online membership.
''Clearly, AOL's unlimited usage pricing offering has negatively hit gross margin,'' said Morgan Stanley analyst Mary Meeker. ''The onus is on the company to
increase other revenue.''
Meeker, who maintained an outperform rating on AOL, saw reason for optimism, however, noting that cost management offset the effects of more conservative
revenue accounting.
Meeker kept her fiscal 1998 earnings estimate at $1.00 per share, while ''waiting to see what changes the closing of the CompuServe (Corp (CSRV)) deal will
bring.''
AOL's share activity extended an extremely choppy run for the stock over the last two weeks.
The shares fell more than 13 points to 74 during last Monday's global stock market sell-off and had recouped nearly all that by last night's New York Stock
Exchange close. With this morning's losses, the shares are again nearly back to the levels hit last Monday.
More news for referenced ticker symbols: AOL, CSRV, and related categories and industries: Internet-Stock-Index, stock capsules, treasury.
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