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

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To: Frank Ellis Morris who wrote (13371)12/31/1998 9:21:00 PM
From: Art Stone   of 13594
 
It's been a while since I've done this math...

AOL today announced 15 million subscribers. With a market capitalization of about $70 billion means the MC/subscriber ratio has now reached something like $4600. The much touted "Cable TV" valuation model pointed a year or two ago at a valuation of $600-$1000 per subscriber.

What's changed?

How can $21.95/month + a few dollars/month advertising revenue justify this valuation?
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