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

To: Pruguy who wrote (16384)	5/11/1999 9:32:00 AM
From: Steve Robinett	Respond to of 41369

Pruguy, You comment on AOL's increase in subscriber fees, saying they raised them because they could. True, and only after they raised subscriber fees did they have positive cash flow. You miss the point of my conversation with Vendit. But, you do raise a very interesting question. When AOL raised fees, many people anticipated subscribers would go elsewhere in droves. It didn't happen (it doesn't matter why, at the moment), which suggests AOL hasn't reached the point of demand elasticity in its pricing--and could raise prices again, say, to $24.95/month. I'd say the stock would climb on that news. Best, --Steve