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Technology Stocks : AUTOHOME, Inc
ATHM 20.90+1.1%2:12 PM EST
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To: claude pappas who wrote (13030)7/27/1999 8:04:00 PM
From: Jing Qian  Read Replies (4) of 29970
 
I was pondering about how can ATHM reduce its price to $20 last night. And there was this rumor this afternoon. Maybe a coincidence. There are 2 obstacles for ATHM. One is the upgrade speed. Another is the high price, i.e., $39.95 a month. The very reason that one of my friends refused to subscribe to @Home is this price. He said that he would definitely subscribe if the price is lowered to $20. I feel he may get his wish fulfilled soon. It would be tremenduous marketing strength to beat AOL with the same pricing. AOL would be forced to reduce its price to $9.95. But I feel ATHM would come out as a winner because $20 fits into most of people's budget, not just the well-to-do.

Then again, how can ATHM make money below cost? Can someone give me an explanation.
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