AOL: Steady As She Goes

tim armstrong, pointing

After AOL’s big investor day yesterday, Jefferies has a note out and “came away positively.” 

They have a hold rating on the stock and are basically saying: steady as she goes. While there isn’t enough evidence that the turnaround is working to make the stock a buy, AOL is basically heading there, Jefferies says. 

Key takeaways:

  • Jefferies likes AOL’s management team and a renewed focus on revenue growth.
  • HuffPo has aggressive growth plans. This is thanks to the AOL portal’s traffic firehose, international expansion and “a higher quality of journalism, while staying within budget.”
  • “Early Patches will start to see profitability by 3Q10/4Q10.”
  • Project Devil, AOL’s huge new ad format, is doing well. It’s small right now but they’re expanding it aggressively both on their properties and through their ad network.

Don’t Miss: AOL’s Investor Day Slides Will Convince You That It’s Not Screwed →

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