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Technology Stocks : America On-Line: will it survive ...?
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To: RagnBull who wrote (9862)5/6/1998 10:28:00 PM
From: Craig Richards  Read Replies (1) of 13594
 
Bull,
Thanks for pointing out the slowing growth of AOL subscribers. But considering that the rate hike took effect on 4/1 and that some subscriptions were cancelled due to it, it's impressive that their membership numbers are still growing at such a pace. Another thing to consider about the upcoming season. In previous years, AOL has shown slower membership growth during the summer months. But they also show less usage during these months. That means that AOL's network usage costs usually go down during these months. If AOL is collecting more per subscriber, and spending less per subscriber in network time, their earnings could look very good for the next 2 quarters.

Craig
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