America On-Line: will it survive ...? Message Board

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

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To: Investor-ex! who wrote (6114)	11/29/1997 1:46:00 PM
From: Art Stone	Read Replies (3) of 13594

And if you could figure out and subtract all the legitimate overhead expenses required to support the extra activity that generates the 16% in "Other Revnue", where's the profit? A sign of this, and a clue to problems ahead - look at the 10-Q released about two week ago. While membership went up 40%, Generat and Administrative expenses were up 170% year to year. The more AOL tries to attract the first-time computer users, the harder and more expensive getting them online as a paying customer becomes. AOL's approach seems to be that they'll solve this problem by making the User Interface simpler still. By the way, what's the deal with Tel-Save? Tel-Save's beta testing on AOL to provide online billing was supposed to occur during the summer, and be in full release by fall - but so far it doesn't appear to have happened. Any chance of Tel-Save getting their $100 million back if AOL defaults in providing this service?

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