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

To: tang who wrote (19322)	5/30/1999 8:27:00 PM
From: Jenne	Read Replies (1) \| Respond to of 41369

AOL - With the stock down 30% from its April high, we are tempted, but remain challenged to see near-term strategic catalysts. We have faith that AOL will be able to secure faster speed access for its customers, despite with perceived broadband competition, given increasing evidence of customer loyalty. After a recent analyst meeting, we remain impressed by the company's ability to capture more time and money, particularly from shopping. Over 95% of merchants on AOL Shopping renew their contracts, almost always for larger deals, often as much as 5 times greater. We wonder how big the 1999 AOL holiday eCommerce season could be? During the 1998 holiday shopping season, AOL members spent $1.2 billion. In the month of March, members spent $727 million, more than in the month of December 1998, and March saw 1.7 million first-time buyers. Could Christmas 1999 be $10 billion? Could Christmas 2000 be $50 billion? We believe rental payments from merchants to AOL should drive profits higher than our estimates. the WEEKLY WEB REPORT - May 27, 1999

To: tang who wrote (19322)	5/30/1999 8:40:00 PM
From: Pruguy	Read Replies (1) \| Respond to of 41369

interesting question. It is difficult to see why ATHM will gain by it..I think it would depend on how the deal is structured...It is quite possible that AOL is just waiting for the exclusive contracts to expire, so they can write up their own contracts....Given a choice between AOL and ATHM over the same cable provider, ATHM would definitely be the loser....Knowing that, ATHM wiill probably work out some arrangement before the contracts expire so they don't end up as a footnote in the internet boom of the century

To: tang who wrote (19322)	5/30/1999 9:52:00 PM
From: robert duke	Respond to of 41369

Well I'm not sure if AOL would make a deal with att or athm. I'll bet it would be att first before athm. But att will hold it off as long as possible. I thinkwe will see that cable deal next year and not this year. And if we do see it this year then it will be in the last quarter of the year. Case is not in any hurry to do anything since the stock price has pulled back and he has nothing new to tell people since it is mid quarter. We are now waitig for the stocks to move higher on the earnings that come out in late june. So he may not even announce a deal even during earnings season. Steve Case is in no rush. ALso the average internet user is just trying to figure out what to do on the net and is really not worried about the speed as long as it is somewhat fast and 56k for a modemn works fine for 80-90% of the users. I still see the stock price at 250 by the years end.