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Technology Stocks : America On-Line: will it survive ...?

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To: Zoltan! who wrote (5242)10/25/1997 1:14:00 PM
From: John Kratus  Read Replies (1) of 13594
 
Duncan, thank you for the post.

This survey showed that AOL's subscribers increased by 3% in a three month period. Surely the total online population increased by more than 3% during that period. So those people who had been projecting AOL's growth based on anticipated online growth are going to have to rethink their assumptions.

I also agree with the post on AOL as a cyber-mall. Why would any retailer want to sign up with AOL exclusively? That would be like the Gap signing an exclusive deal with a shopping mall to appear only in that mall. Wouldn't the Gap want to be in every mall that will attract customers and generate profits? Search engines like Yahoo and Lycos have plenty of cyber-shopping available. Why would any shopper need AOL?

A negative Greenberg article, a downgrade from an obscure brokerage, and now this survey. The smell of blood is in the air around AOL. Once the institutional wolves smell it, even a stock split won't save this bloated carcass.

John
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