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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?


To: John Kratus who wrote (5156)10/22/1997 4:31:00 PM
From: J.S.  Respond to of 13594
 
I can't seem to get my mouth closed on this one. In the past three
weeks AOL has gained about 2 Billion in market cap while the market
has gone sideways. Why? Are they ready to announce "10 million sold"?
What has changed?

Swallowing flies,
Joe



To: John Kratus who wrote (5156)10/22/1997 4:33:00 PM
From: Muizz M. Kheraj  Read Replies (6) | Respond to of 13594
 
AOL at 91 is a bargain. The stock's real growth is still in front of it. That is, if you are a long term investor.

AOL currently has 9 Million customers, with an estimated 30 Million customers on the internet worldwide. This is compared to 6 Billion people in the world. About half these people have a phone. If 10% of individuals with a phone get on the internet over the next 5 years (very realistic growth), then we're talking about 300 Million people on the net, or about 270 Million more people. AOL, at minimum, will capture about 25% of these people.

In short, by 2003, AOL will have 100 Million customers, with revenues at minimum (not counting Ads) will reach 10 Billion dollars annually.

Muizz