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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Uncle Frank who wrote (95454)	2/6/1999 10:55:00 AM
From: BGR	Respond to of 176387

<OT> Uncle Frank, AOL of course is the most solid of the 3, but even AOL has a sky-high PE. If you compare DELL with AOL, for example, either DELL should be valued as MSFT or AOL as PSFT. Now I agree that the market is a forward looking mechanism always trying to discount future cash flow and earnings, so the market must believe that AOL's future earnings potentials are better than DELL's. Which may very well be true if net advertisement revenues dazzle, but the reports that I read seem to indicate that the rates are falling. Besides, software to filter advertisements are already available (though Mary Pugh, I believe, has indicated in the internet analysis thread that AOL is still a hot area for advertisers). AOL has a captive audience, and will probably capture more market in similar demographic segments, but no way can they go international like DELL can. That is, it is much harder for AOL to form India On-line or China On-line or Brazil On-line and get ad revenues than it is for DELL to direct sell PCs in these countries. So the market is primarily US and Europe (even there I am not so sure because of the multi-lingual and multi-cultural issues). So, where does that leave us? I am not sure. Liquidity may continue to drive AOL up, but I am happy with my DELL LEAPS. Sorry about the rambling, I am myself trying to understand eCommerce. May be I should buy Mary Meeker's book. -Apratim.