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Technology Stocks : AMERica on-Line, Another over valued company?

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To: marc halpin who wrote (104)6/1/1996 11:50:00 AM
From: Zoltan!   of 222
 
SMITH BARNEY SEES DIM FUTURE FOR AMERICA-ON-LINE
May 30, 1996

" ... we are not certain how they (AOL) will be able to translate that in an increasingly Internet-based environment," says Smith-Barney's Pankopf. "Increasingly, content is shifting to the Internet and subscribers will follow. It is difficult to see how America Online will win that battle when you have companies like Viacom and Disney, in addition to the individual content provided by Internet users."

So now you know why CompuServe is moving to the Internet. In response to your posting, CompuServe has had an Internet only service called Sprynet in operation for some time. It is not only less expensive than GNN, but also more advanced. GNN and AOL are rated well below Sprynet and CompuServe respectively in the CNET survey of Internet Service Providers. AOL is a low-brow service that relies on its users general ignorance.

Eventually AOL will have to move to the Web and it is hard to see how it will ever recoup the investments it has made as a proprietary online service. AOL's situation is now analogous to TWA's in the late 1950's. TWA was the last among the majors to employ jet airliners and its formerly loyal customers went elsewhere. TWA never regained its premier position.

Regards
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