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Technology Stocks : General Magic

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To: Austin S. who wrote (2883)	7/22/1998 7:30:00 PM
From: CanynGirl	Read Replies (2) of 10081

I agree with your assessment Austin. Channel programs will be heavily relied on. GMGC doesn't have the money that a new IPO does. Therefore, they have to be careful in their growth plans and not get ahead of themselves. Just to put advertising expenditures in perspective: AMZN: spent ~$25m in '97 on all Marketing (advertising included) EGRP: spent ~$20m in '97 on Advertising AMTD: expected to spend ~$20m in Advertising this year AOL: spent roughly 24 cents of every revenue dollar on all Marketing in it's 'formative' years '94-'96 INTC: spends roughly $120m per year worldwide on Advertising If sales are strong over the next few months, that might allow them to spend $20m next year. Hopefully we'll all get a warm fuzzy feeling when they announce the reseller list. And, who knows, maybe they'll say they already have a significant number of subscribers. Personally, I'm anxious for Oct earnings report. Then, I think they will have a good feel for the business.

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