Armstrong Says AOL's Pile Of Cash Is Up To $600 Million

Soulja Boy has a pile of cash, too

During today’s company-wide meeting with employees celebrating AOL’s search deal with Google, CEO Tim Armstrong announced that the company’s cash on hand is up to $600 million – from $500 million at the beginning of summer.Does all that cash plus the Google deal mean AOL‘s suddenly in great shape?

Not so fast…

In a note responding to today’s deal, Citi Analyst Mark Mahaney writes that AOL remains plagued with “deteriorating fundamentals,” “significant market share loses” in display revenues and search queries, a “profit hole” from the structural decline of its subscription business, and an “unproven management team.”

On the bright side, writes Mark, “AOL remains a top 5 Internet property.”

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