Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: M. Robins who wrote (8733)	3/31/1999 12:12:00 PM
From: Smart Investor	Read Replies (5) \| Respond to of 41369

We will see. I am not using AOL, and most of my friend are not using AOL because they can get it cheaper and faster from somebody else. ISP is a highly competitive commodity kind of service, and there is no lock for customers. If your claim of generating money like crazy is true in the next 5 years, why a projection of revenue growth for only about 50% or less for the next 5 years? If you assume AO's stock price stays at today's level in 5 years, its PE will still be more than 100 after five years of compounded earning growth of 50%. With more competition coming in from all directions, the margin will go down and growth rate will slow, and this stock will eventually run out of gas.

To: M. Robins who wrote (8733)	3/31/1999 12:17:00 PM
From: stock_bull69	Respond to of 41369

Babson-United Investment Report picks AOL as one of their 6 analysts' favorite stocks: This Internet giant continues to fire on all cylinders with subscriptions expected to reach 20 million worldwide (from the current 18 million) by the end of the summer. This represents a year-over-year increase of more than 30% and gives the company a 55% share of the online services market. Still, the firm's fundamentals go well beyond its growing subscriber base. It also generates revenues through advertising, with companies ranging from traditional retailers to financial-services providers stampeding to market themselves on AOL's sites. Realizing the potential of e-commerce, the firm just completed the acquisition of Netscape. The deal allows AOL to capitalize on Netscape's business software lineup and absorb a leading destination site that funnels even more web surfers to the AOL network. With a strong management team at the helm, America Online is well positioned for long-term growth. The company can leverage its dominant Internet presence to make acquisitions or enter marketing agreements (e-Bay) that will create even more lucrative revenue streams. Moreover, through strategic alliances with phone service providers (Bell Atlantic and SBC Communications) AOL will continue to offer its customers fast, high-speed access to the web. Boasting the most powerful brand name in cyberspace, America Online is being added to our Supervised List and is recommended as a buy for aggressive growth! This article was written on March 29th when AOL was trading at $125! Steve