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Technology Stocks : America On-Line (AOL)
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To: Ibexx who wrote (11663)4/19/1999 11:42:00 PM
From: PAL  Read Replies (1) of 41369
 
There is no question that AOL management sees the pressure on AOL stock the past few trading days. AOL cannot keep splitting its stock, not at his price, not yet at least. But I will not be surprised if AOL will announce a rate increase of $ 1/month. This is no brainer since cable rates have increased steadily and when was the last time AOL increased the monthly fee?

$1/month translates to $ 12/year. With 17 million subsribers, that means an additional $ 204M to the bottom line, or about an extra 22c/share on earnings. I suspect that will be announced soon, and analysts will come back salivating in the prospect of additional revenues which will fall straight to the bottom line.

Disclaimer: the above is my speculation only about what AOL's next move will be. I have no information if that is the case (no pun intended), nor any leak in info. But if that happens, you hear it first on this thread.

Good Luck to All

Paul
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