Update: In a market that’s up for the day, AOL’s stock is tanking, falling 21% as of this writing.
The big problem? AOL’s revenue was down overall on a year over year basis despite a number of acquisitions which should be boosting revenue.
It’s also burning a lot of money on Patch, notes fund manager Eric Jackson.
Original: Analysts were fine with AOL’s earnings report this morning.
Says one: “The top line was better than i thought (10% dom display if you take out huffpo and techcrunch acqs). Levick leaving will be a hit, but long-term I think it is still moving in right direction.”
The market was not so impressed.
The stock is down 14.6% 20%!
Shares of AOL fell by 12.48% or $-1.88/share to $13.19. AOL, Inc. is trading at a price to book ratio of 0.7. This indicates that the value of the company’s underlying assets exceeds today’s market price. The PEG is 1.2. The price to sales ratio came in at 0.7. Hence, the firm is extremely cheap relative to its top line sales figures. On average, 1662440 shares of AOL exchange hands on a given day and today’s volume is recorded at 688221. These financial metrics combined make this company seem undervalued. Lookout for any takeover chatter or takeover news regarding this stock as one of the bigger players may have an eye on this one.
We are sceptical. Who would buy? Yahoo? Hah.