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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Annette who wrote (21273)	6/10/1999 7:20:00 PM
From: Maverick	Read Replies (1) \| Respond to of 41369

Henry Blodget expects subscriber growth number this qtr on the low end of AOL's guidance America Online (AOL) 106 1/4 -4 3/4: Shares of America Online are running into another wall of worry this morning following contentions from Merrill Lynch analyst, Henry Blodget. Based on recent conversations with management, he expects AOL's subscriber growth number this quarter to be on the low end of the company's guidance-- which was 750,000-850,000-- due to significantly weaker than expected growth in its international business stemming, in part, from the "free access" movement in the U.K. that is curbing AOL's growth, and more than likely, prompting it to move toward a free offer of its own to combat other such offerings from the likes of Microsoft and Dell. Mr. Blodget is quick to point out, however, that much stronger than expected growth in the U.S. is offsetting some of the international weakness and that he remains "very comfortable" with his revenue and EPS estimates given that North American subscribers generate all the company's revenue. In addition, he also reminded investors that AOL fell short of its subscriber growth target in the yr-ago quarter by almost 100,000, but because of the strength of its overall business, that shortfall had little impact on the stock. These positive reassurances notwithstanding, AOL remains on the defensive as there is no room for error this time around given the current environment of rising interest rates and greater discernment of Internet companies' earnings prospects. Alas, the idea of a chink in AOL's armor has merely exacerbated the negative tone toward the Internet issues which remain in the dumps and significantly off their all-time highs.By Briefing.com