Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: The Duke who wrote (7613)	2/11/1998 2:29:00 PM
From: sam	Read Replies (2) \| Respond to of 13594

When was that released?

To: The Duke who wrote (7613)	2/11/1998 4:16:00 PM
From: SJSharky	Read Replies (1) \| Respond to of 13594

The Duke-- Thanks for the additional info. Looking at the gross margin, assuming the $14M is valid, gross margin would drop to 31.9% from the quarter. The analysts claim that AOL is still growing their network, so investors will cut them some slack. But won't they be continually growing their network?-- in the form of either increased modems or upgrading to new technologies as they arrive? In any event, I don't think a drop in a few margin points will affect the stock anyway. With all the buy recommendations out, the big boys will do anything in their power to support the stock price on this one. Whether we like it or not, good income management requires that you "play" with your numbers each quarter, within the materiality guidelines of course. It will be interesting to see what effect the price hike has on their current (and future) subscriber base. Personally, I think most people consider AOL far easier to use than a regular ISP. (Most people on this thread don't need AOL, but you have to understand that a lot of people are technophobiacs. My mom uses AOL because it came with her computer and all she had to do was click on the icon to set up.) Now we'll see if its worth the $2 for the easy setup process and to keep your e-mail address the same. If people move, this should lower subscriber and advertiser revenues...then the shorts will be smiling. --Ryan