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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 234.37+0.2%3:59 PM EST
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To: Wizard who wrote (72122)8/5/1999 12:37:00 PM
From: Eric Wells  Read Replies (1) of 164684
 
>>But I don't think too many people own AOL stock for
>>its access revenues (and low margins). AOL is about
>>its high margin rent, advertising etc...

I agree with you that if there is one internet stock that one might even consider being long, AOL would be the one. I'm still too bearish on net stocks to be long any of them, however - in fact, I'm so bearish on the market at the moment that I don't own any stocks (100% cash).

I'm a bit concerned about your statement above, though. I'm wondering how you are able to break out AOL's margin on access revenue vs. advertising revenue - does AOL actually break these numbers out somewhere? I'm of the view that internet advertising is still plagued with too many issues to present a model for substantial revenue generation. As I'm sure you know, AOL's access revenues currently are nearly four times their revenues from 'Advertising, commerce and other' (as is indicated on AOL's most recent income statement). In fact the Access revenues currently account for roughly 75% of AOL's total revenues. If I were long AOL, I would be very concerned about anything that put those revenues at risk - especially salvos fired from juggernauts such as Microsoft.

Best of luck to you.

Thanks,
-Eric
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