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


To: Steve Robinett who wrote (4814)2/10/1999 1:58:00 PM
From: RocketMan  Read Replies (2) | Respond to of 41369
 
Which brings up the question of whether AOL can ever increase operating margins to 50%.

Steve, I agree, and furthermore, I don't see margins growing to anywhere near that with their current fee-based model. Which is why Pittman has been evolving the company to media-based, which is his background and also fits in with where the internet is going, IMO. How soon this will happen, and exactly in what way, is anyone's guess. I suspect the AOL we see today is little like the AOL we will see in a year or two, certainly in ten years. With broadband in whatever form, with interactive video, with convergence between data-based and entertainment-based services, etc, who knows where AOL will go? The best thing for AOL right now is what they are doing, which is growing the subscriber base.