Shares of America Online Inc. shot up today after a report from a Lehman Brothers analyst predicting a strong subscriber growth.
Analyst Brian Oakes said he anticipates the Vienna, Va., company will announce at a partners conference tomorrow that it signed up 300,000 new subscribers during November.
That would follow the 275,000 new subscribers who signed up in October. Oakes' report says he is confident that the company will hit his prediction of 800,000 new subscribers during the quarter, and possibly even hit 1 million.
The new flat-rate pricing, which went into effect yesterday, also should boost subscriber growth, Oakes' report said.
Stock in AOL reached $38.63 per share, up $3.38, by noon today. The stock closed at $35.25 on Friday.