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

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To: Keith J who wrote (7484)2/10/1998 9:51:00 PM
From: John P. Henrie   of 13594
 
RE: I am new here and a periodic poster on the IOM thread...

To be fair, my posts about AOL (on the IOM thread) have been very bearish. I see only downside right now.

My question for anyone who wants to answer?

If customer base grew from 6 million to 12 million when AOL implemented the $19.95 unlimited plan, then how many of the new 6 million AOL users are price sensitive? If one sixth of the new users were to leave because of the price hike, that would essentially erase any additional revenues raised through the price hike.

The analyst believe AOL can raise prices and not see any meaningful runoff. They base this on AOL's content. Quite frankly, (as a former paying member of AOL) I can find pretty much what I wanted from AOL on the the Internet for free(even motley fool). I don't miss AOL (or its annoying advertisements -- you know the ones that all of the sudden pop up on your screen).

What does everyone else think will happen?

Later,

John

P.S.

Please no pie in the sky responses. I have taken a similar ride before on a different stock. I rode IOM up and down, managed to make a reasonable profit and still hold some. But if I would have sold at the top (which is what I think I see AOL at right now), I would have had a lot more money in my account.
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