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: Steve Robinett who wrote (11538)	10/26/1998 10:30:00 AM
From: Stockjet	Respond to of 13594

Does anybody have a feel for how earnings will come in compared to estimates? Is it true that earnings will be announced on Tuesday before the market opens?

To: Steve Robinett who wrote (11538)	10/26/1998 12:39:00 PM
From: Jason Cogan	Read Replies (1) \| Respond to of 13594

Steve: <<AOL is one of the few Internet stocks that's making money right now. But the question, as always, is how much, how fast and for how long.>> As you are probably well aware, it is even questionable how much money AOL is making right now. On a cash flow basis, AOL is actually losing money. The way they get away with this, among other things, is amortizing software development costs as "investment" rather than expenditures. But, in a business as challenging and competitive as on-line access, software development costs are really a "recurring" charge. AOL must spend to update their infrastructure and front end every quarter. Add those numbers to AOL's costs, and you get a much truer picture of AOL's money making ability. Another example of the smoke and mirrors that AOL is masterful at, and Wall Street loves to swallow. Regards, Jason Cogan