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Technology Stocks : America On-Line (AOL)

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To: 10K a day who wrote (30097)8/28/1999 8:02:00 AM
From: John Carragher  Read Replies (4) of 41369
 
Barron's Abe is at it again bashing aol... look for pressure on Monday.

Certainly, too, the descent from its peak by the stock of America Online,
which has carried it from 175 and change to below 100 -- and at times
significantly below 100 -- a slide that sliced off a tidy $80 billion or so from
the company's market cap, is not unrelated to the gathering pressure from
powerful rivals like AT&T and Microsoft, Qwest, MCI WorldCom and US
West, along with scores of less celebrated competitors.

The point of attack of all these companies is America Online's monthly
subscription fee. And the means of attack, no surprise, is by slashing or even
eliminating the charge. That AOL has been forced to ditch the fee in launching
its Netscape online service in Britain could well be a precursor of things to
come at home.

America Online is a resourceful outfit and likely to survive the onslaught. But
we have strong doubts the same can be said for its profit margins.
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