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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: LWolf who wrote (836)1/1/1999 9:51:00 PM
From: LindyBill  Read Replies (2) | Respond to of 41369
 
AOL's profit margins should be very ample.
Their "Achilles heel" is the subscriber acquisition cost, and how they account for it. If is very expensive to do these mailings and pick up subscribers. They have always had an accounting problem with this too. They have been capitalizing this acquisition cost, rather than expensing it. They may have switched over to expensing it now, I am not sure.


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