SI
SI
discoversearch

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: yard_man who wrote (9337)4/6/1998 11:28:00 AM
From: The Duke  Read Replies (3) | Respond to of 13594
 
Aol down 2, no comments? why the weakness?



To: yard_man who wrote (9337)4/6/1998 6:52:00 PM
From: Glenn D. Rudolph  Respond to of 13594
 
I don't think fundamentals will
catch up to the stock price, but it may take a market decline to reprice the stock.


Barry,

I really do not know. I hope your correct since that will make me money. I do believe the market decline has begun.


I think the stock price is walking a tightrope at this point. Lose subscribers and it gets
killed. Increased users or per capita usage and AOL's costs will increase faster than
proportionately, creating service issues that will kill the stock. It's a delicate balancing
act. Advertising revenues must grow at a phenomenal rate for this balancing act to
continue, IMO.


My conclusion is the advertising revenues is the key. I am not sure if the market will be as large as the analysts indicate.

Glenn