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

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To: david andrew phelan who wrote (837)12/18/1996 8:49:00 PM
From: jack rand   of 13594
 
Netcom has barely 500,000 subs. That they're leaving the consumer market (but keeping $19.95 for exisiting subs) is therefore no
big deal for AOL. *Max* possible gain of 500K subs (realistically
maybe 250K over next 3-6 months, many of which will go to AT&T, MSN etc.) hardly should be worth 13% rise in AOL stock. Just further indication of how this stock trades mainly on kneejerk sentiment rather than fundamentals.

Basically, zero substantive has changed since the stock was at
$25 except the surge in usage (and decline in margins) due to flat rate -- but much of that apparently is of chat and not of information services which is where the ad space is upon which AOL has staked its future.
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