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: Glenn D. Rudolph who wrote (9331)	4/6/1998 9:54:00 AM
From: yard_man	Read Replies (2) of 13594

>>I feel the price of AOL stock is ahead of itself but it appears possible the fundamentals may soon exist to support this price. The subscirption revenue by the users seems as though that will not be an event of significance in the long run. Any thoughts from anyone?<< An exclusive deal with a bookseller will not be enough. I don't think fundamentals will catch up to the stock price, but it may take a market decline to reprice the stock. In retrospect, I bought puts too early, but am willing to ride them at least untill May when they expire -- don't know if this helps. I think the stock price is walking a tightrope at this point. Lose subscribers and it gets killed. Increased users or per capita usage and AOL's costs will increase faster than proportionately, creating service issues that will kill the stock. It's a delicate balancing act. Advertising revenues must grow at a phenomenal rate for this balancing act to continue, IMO.

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