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


To: RocketMan who wrote (12744)12/22/1998 2:29:00 PM
From: John Koligman  Read Replies (1) | Respond to of 13594
 
The key phrase is 'if everything stayed the same'. As AOL's growth slows, investors will not award such high premiums to the stock. I have a hard time seeing AOL as an 80 billion company in a couple of years. IBM is an 80 billion company that is quite profitable and has lots of cash flow, it's market cap is 170B. I doubt that the entire computer industry has a market cap today equal to what you are talking about for AOL. Personally, Boeing, with a PSR of .5 and 56B in sales, with a market cap of 31 B, and a bit higher barrier to entry into it's business than AOL is more to my liking. <gggg>

Good luck
John



To: RocketMan who wrote (12744)12/22/1998 5:15:00 PM
From: trouthead  Respond to of 13594
 
I was wondering the same thing. I'll bet 40 years ago the same statement was made about a market cap of a billion. I think 20 years or less from know the trillion dollar cap company will be common.

It's all a matter a perspective and relativity to what you are accustomed to.

jb