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

To: Sabrejet who wrote (27673)	8/2/1999 2:47:00 PM
From: Vendit™	Read Replies (1) \| Respond to of 41369

Who's Worth More? AOL or MSFT America Online is now approaching the 100 million desktop customer mark, counting AOL, Compuserve, ICQ, Netscape.com, and Winamp. Microsoft has 160 million desktop customers across all of its product lines. Mr. Benjamin did not go into this detail, but if America Online could derive a dollar amount of profit per desktop customer similar to Microsoft's $57.50, and grow at the same rate, AOL would deserve a valuation around $300 billion. Is an AOL that produces as much or more revenue per user than Microsoft possible? In short, yes. Within 5 years the AOL model will most likely be producing profits of at least $50 per user each year. With even the most conservative growth estimates AOL's desktop user base will reach 150 million. That means that the online giant could rake in $7.5 billion each year in profit, and make my trillion dollar company argument look a lot more likely. For the full story go to: streetadvisor.com

To: Sabrejet who wrote (27673)	8/2/1999 2:55:00 PM
From: Vendit™	Read Replies (2) \| Respond to of 41369

Re: AOL Subscriber Growth Subscriber growth for AOL has been on an exponential curve since the company went public in 1992. After reaching the 1 million member mark in 1994, membership quickly doubled to 2 million members in 1995, and doubled again in 1996 to 4 million. By the end of 1997, AOL counted nearly 8 million domestic member, and 8.6 million total members. In June of 1998 AOL had reached 12.5 million members, and recently announced the arrival of its 16 millionth member in February of 1999. Current growth rates should carry AOL to over 18 million members by June of 1999. Between 1998 and 2001 the number of desktop PCs on the Internet in North America is expected to increase 95% to 57,600,000. In the rest of the world, PCs connected to the Internet will increase 129% to 40,681,000. Even if online service providers (AOL) lose market share to ISPs (Internet service providers: Mindspring, Earthlink, Flashnet), AOL could still see twice as many users in 2001 as they have today. Add to that the relative inelasticity they have experienced in pricing their service, and AOL's access revenues should easily meet future expectation. streetadvisor.com