USRX Message Board - Msg: 995106

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Technology Stocks : USRX

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To: Janice Shell who wrote (15411)	3/15/1997 8:25:00 AM
From: Glenn D. Rudolph	of 18024

Well, the Street believes they (AOL) will start showing good earnings. And they're big; the Street likes big, too. We're WAY off topic here <G>. You are correct that the street believes AOL will start showing good earnings. My only point was AOL has been around for greater than a decade and they have not been bright enough in their marketing to turn one penney profit in that entire time. In fact, they have been dumb enough to loose an amazing amount of money. Their operating costs, specifically marketing, exceeded gross sales; so I was not surprised when they did not have the foresight to see what their customers would do when use became unlimited. I do recall the situation with Sprint too. I am surprised they did not do their homework better. At least, they know how to turn a profit. This brings up a point that is consistant in most areas. The average ISP almost always underestimates demand. You would think that they could see typical demand per user by looking at the progress of their peers. This tells us a lot about the marketing expertise of a lot of companies and it is not good:-( Glenn

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