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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: RocketMan who wrote (4209)	1/12/1999 4:03:00 PM
From: gdichaz	Respond to of 29970

To RocketMan: Just a factor you might wish take into account. AOL for a long time capitalized its expenses for obtaining customers. This cut ongoing expenses and therefore meant higher reported earnings (actually just smaller reported losses :-) ). A year or so ago, AOL decided to stop that practice and deducted all those expenses currently. This meant a huge hit to "earnings" - actually losses. The result. The "Street" decided that AOL had stopped its "creative" bookkeeping and was leveling on "earnings" at last. Presto. AOL began its rapid rise to the high PEs it has now because it was showing much lower earnings (actually larger losses). So suggest that @Home will not necessarily suffer if the accounting change makes sense, even if near term earnings are lower. Question - who here is investing in @Home for its earnings track record? Don't all speak at once. :-) Chaz PS Some studies have shown a direct and real correlation between rapid revenue growth and long term stock price increases. There is no such direct correlation to earnings. Don't have a link to them though but perhaps someone else here does.