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AOL had a complete disaster today with its stock falling 26%.

What’s the problem with AOL? It missed on EPS by a mile with earnings this morning. Revenue isn’t growing. It’s pouring money into Patch, and that’s not working.

The display ad revenue is up, but that’s largely thanks to Huffington Post and TechCrunch, two acquisitions. Can it keep growing those properties? And can it get the rest of the properties to grow?

These are questions for investors to ask. And they’re not going to want to ask these questions in a crazy market like what we’re seeing right now.

Correction: This post originally said the stock was down 12%, which was based on some bad maths from Google Finance. We regret the error. 

chart of the day, aol stock, august 2011

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