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Technology Stocks : RealNetworks (NASDAQ:RNWK) -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (978)	7/26/1998 8:34:00 PM
From: neverenough	Read Replies (1) \| Respond to of 5843

I just got this from Web Stock Wizards, they make a strong case for RNWK! Real Networks can't seem to shake profit takers. After posting impressive earnings with revenues strong all across the board, CEO Rob Glaser's testimony against Microsoft causes Real shareholders to send the stock tumbling from its recent $44 high. We think this is an overreaction. Although no one can predict what will actually happen with the proceedings, let's examine the situation. Real Networks owns 85% of the media player market and their new G2 technology is ranked far superior to that of Microsoft's. Can one claim a similarity between this situation and Netscape's a few years ago? We don't think so. Netscape charged for their browser from day one and has been charging for it until only recently whereas Microsoft's Internet Explorer has been free for quite some time now. Real has always given away their players for free and knew to generate revenues via licensing and content placement fees. Real's RealPlayer continues to be downloaded at a rapid pace. Microsoft is a current investor in Real Networks. Real recently posted earnings showing their clear dominance of the media player market, and lastly, in his testimony, Rob Glaser, Real's CEO, only aimed to have Microsoft change their ways, not completely back out of the media player market. Using these facts to compare the current situation with the Netscape-Microsoft rivalry years ago, and one can see that Real continues to have the upper hand. As for those who understand the actual software debate behind the proceedings you will be happy to know that I happen to be using a PentiumII300mhz with Windows '98 and Real G2 Player and everything works together cohesively. To show just how irrational investors in the internet are, think about the fact that it has been public knowledge for well over six months now that Microsoft has had a rival media player and that they intended on promoting it against that of Real Networks. If anything, we would view Rob Glaser's testimony as a move forward that would make Real's stock be more valuable. He is clearly documenting Microsoft's monopolization years before broadband access will cause the media player market to become extremely valuable. Oh well, Mr. Glaser watched his company's market capitalization sink by 25% last week as individual internet investors still don't do their homework.

To: jjs_ynot who wrote (978)	7/26/1998 9:49:00 PM
From: Scott C. Lemon	Respond to of 5843

Hello dave_s, > What is your opinion of the current RNWK situation related > specifically to the stock potential near and long term? I'm not very good at predicting the numbers, but I believe in some inevitable technologies. I believe that overall, Glaser is a smart guy. He has an impressive company with numerous people who "get it" and are working hard to deliver. RealNetworks now delivers huge amounts of content on numerous web sites. They are continuing to adapt their technology to deliver rich multimedia via standards. I believe that the current "noise" being generated surrounding Microsoft and it's practices is going to grow to a deafening roar. This is standard operating procedure for Microsoft and now people are starting to cry foul. I believe that Bill Gates had (and maybe still has) the ability to stop the anti-Microsoft movement, by backing down a little bit. But instead he continues to use the monopoly that he had built to leverage more money into his company. In one way I can't blame him ... I guess that's the American way ... keep running until someone stops you, and then pick a new direction and run. I believe that the recent press has made some people think about the potential that Rob & Company have pissed off Bill & Company, and that now RealNetworks is going to pay for speaking up. And so many people bailed out of the stock. But if that's what is allowed to occur, then I think we are witnessing a future being created that could be very frightening. I'm in RNWK long right now ... I don't believe that these tactics will be allowed ... or should be allowed. I think that in the long run RealNetworks will continue to gain supporters and consumers. I would be concerned about RealNetworks servers though ... they better be prepared for another typical Microsoft tactic. I wouldn't be surprised if Microsoft service packs for NT start to break the RealNetworks servers. Ask Netscape about this ... ;-) Scott C. Lemon