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

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To: PAL who wrote (8933)3/19/1998 5:03:00 PM
From: Keith J  Read Replies (1) of 13594
 
Well, that's not exactly downgrades, but I understand what you're saying. Interesting, both AOL and YHOO down today, but XCIT up. Go figure. <G>

I think the analysts are missing a lot in regard to future growth of AOL vs. ISPs such as MCI Internet. Big article in BW last week (which I just got Wednesday - lovely snail mail) about cheap PCs. Nearly 40% of new computer buyers are going to go for the sub $1000 machines. But the average income of these people are only $27000, vs. $50000 for current PC owners. Yes, a lot of the reason people are buying computers are to get online. But with these income levels, they are much more likely to be price conscious and not want to pay AOL $22 a month. Just MHO.

KJ
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