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: ed who wrote (15932)	5/8/1999 7:10:00 PM
From: Rhino Ray	Respond to of 41369

I'm positive that Barron's will analyze the heck out of this AT&T/cable thing this entire issue. Which will give us AOL holders plenty to ponder. All we need is the truth; which is that the outlook is still spectacular for AOL and that none of this is a negative to AOL. Let's look at some simple facts: 1) The fundamentals are exactly the same as they were a couple weeks ago. And in fact the evidence is that AOL subscriber rate and e-commerce revenues are growing faster than ever. 2) There continues to be a large and expanding backlog of advertisers that are just beating the door down to advertised with AOL. 3) We are still several years off before broad band cable modems can control a major portion of market share. 4) AOL continues to grow for the same reason McDonalds continues to grow (by the way it's not the hamburgers, there are many places that have better hamburgers). It's the kids' stuff, and AOL has it with their buddy lists etc. If your friends are on you want to be on. 5) The cost to add each person to cable is expensive a few thousand dollars per cable subscriber and very time consuming. As I stated previously this will take several years. 6) Most likely there will be governmental actions forcing AT&T and others to allow equal access to AOL. 7) Technology is moving and advancing at such a rapid pace, that by the time the cable companies are able to become totally employed, another technology such as wireless etc. will be the next thing. Someone will always have a "fatter" pipe. Our AOL made the right move by staying out of the "pipe" business, and is in the portal and content provider business. This period of time will go down as the information age, not the hardware or pipe age. It's about whom can deliver the information. While it will always be a dog eat dog world of who can have the biggest "pipes". Hopefully, others will realize what we already know about AOL.