SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jason Cogan who wrote (7136)2/9/1998 2:34:00 PM
From: Keith J   of 13594
 
Pretty easy really. $2/month per subscriber @ 12 months/year @ 11 million subscribers. Equals $264 million in revenue. Pure profit compared to previous revenue stream. Figure about 40% for tax, leaves about $160 million/year. Multiply by, oh lets say 15, to give it a current value equals just about $2.4 billion.

I personally believe AOL is fooling themselves to think they have price flexibility. I believe they will lose some customers and will make new computer owners think twice before joining AOL.

I shorted today @ 105 9/16. I too believe that the quarter numbers will be weak, given the timing of this announcement and what the announcement said. Although if this doesn't fall pretty quickly, I'll probably get out.

KJ
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News