America On-Line (AOL) Message Board

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Technology Stocks : America On-Line (AOL)

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To: Joe S Pack who wrote (36145)	12/29/1999 10:25:00 PM
From: gpowell	Read Replies (1) of 41369

You cannot compare ocmpany that has 1 M subscribers and signes 100,000 subuscriber to the one with 20M. But with large numbers even a moderate increase will be great as they can be leveraged to its advantage when it comes to advertishment and e-commerce. Taht is why leaders will keep leading as long as the management is vigilant, smart and active. I agree. The question is whether AOL's valuation needs to be clipped a bit to reflect a more sustainable growth rate. If not, then what other revenue streams are there and what is their growth rate after normalization for subscriber growth. Sure! If that happens and if it falls out of favour with Wallstreet and if the management sleeps, then we will reach that state. But to see all these three conditions become true it will take a few quarters and if that happens individuals like us will not be the first one to know IMHO. I believe you have misinterpreted my statement. I left open the possibility that AOL's growth rate may begin to uptick again. (Back in 96? when AOL had 6 million users it looked like its growth rate was slowing - but it quickly reversed itself.)

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