AOL Stock Hits 1-Year Low, Investors Caught Off Guard

By

After firing its ad sales head earlier this week, AOL stock has dropped at least 6 percent, hitting a 52-week low Wednesday morning.

According to media reports, shares of the ailing Internet company bottomed out on July 27 at $17.52. As of this writing on July 28, shares inched forward to $17.81. By comparison, one year ago, AOL shares were $27.65

On Monday, AOL’s CEO Tim Armstrong outlined several leadership changes in an internal email, including the departure of AOL’s president of global advertising and strategy, Jeff Levick.

As Business Insider points out, “maybe that sent the wrong signal to institutional buyers?”

Analysts say timing of the corporate reorganization announcement coupled with its impending second quarter earnings report have taken investors aback.

Ken Sena, an analyst with Evercore Partners, told AdWeek the timing of these events gives investors good reason to pause.

“The timing of the reorg following the analyst day gives the impression that it was less expected and so close to earnings, when there are already questions about their ability to deliver on full-year guidance numbers,” Sena said in the report.

Adding more uncertainty to the mix, Levick gave a presentation to investors last month on the company’s plans moving forward – but in his absence, investors may not be sure that AOL is charting the same course Levick outlined in June.

As TechZone reported earlier this week, Levick is being replaced by Ned Brody, the former executive vice president of paid services, who is taking on the newly created position of chief revenue officer and president of AOL’s advertising unit, according to the Associated Press.

AOL’s second quarter 2011 financial results will be announced on Aug. 9 at 8 a.m. ET.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.



Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TechZone360, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.

Edited by Jennifer Russell
Get stories like this delivered straight to your inbox. [Free eNews Subscription]

Executive Editor, Strategic Initiatives

SHARE THIS ARTICLE
Related Articles

Can Science Outsmart Deepfake Deceivers? Klick Labs Proposes an Emerging Solution

By: Alex Passett    3/25/2024

Researchers at Klick Labs were able to identify audio deepfakes from authentic audio recordings via new vocal biomarker technology (alongside AI model…

Read More

Top 5 Best Ways to Integrate Technology for Successful Project-Based Learning

By: Contributing Writer    3/19/2024

Project-based learning, also popularly known as the PBL curriculum, emphasizes using and integrating technology with classroom teaching. This approach…

Read More

How to Protect Your Website From LDAP Injection Attacks

By: Contributing Writer    3/12/2024

Prevent LDAP injection attacks with regular testing, limiting access privileges, sanitizing user input, and applying the proper encoding functions.

Read More

Azure Cost Optimization: 5 Things You Can Do to Save on Azure

By: Contributing Writer    3/7/2024

Azure cost optimization is the process of managing and reducing the overall cost of using Azure. It involves understanding the resources you're using,…

Read More

Massive Meta Apps and Services Outage Impacts Users Worldwide

By: Alex Passett    3/5/2024

Meta's suite of apps and services are experiencing major global outages on Super Tuesday 2024.

Read More