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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 229.55

+0.2%

Dec 5 9:30 AM EST

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To: Eric Wells who wrote (72135)	8/5/1999 1:19:00 PM
From: Eric Wells	Read Replies (3) of 164684

Tom - to add to my previous post - you also have to consider the very large number of people that currently are not on the internet - both in the US and outside the US. These people have no knowledge of features provided by AOL's access service - and I would guess that when many of these people decide to get on the net, their choice of ISP will be influenced by price. And if so, the equation is easy: free is better than $20 a month. I believe that much of AOL's current market cap is based on the assumption that AOL will continue to successfully capture large numbers of new internet users. My view is that intense price competition (such as that suggested by Microsoft's announcement today) puts at risk AOL's ability to continue to grow users at a brisk rate. Keep in mind that AOL recently announced offering free access in the UK to counter competition there. Thanks, -Eric Wells

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