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

By Erin Harrison July 28, 2011

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

Executive Editor, Strategic Initiatives

SHARE THIS ARTICLE
Related Articles

Why People Don't Update Their Computers

By: Special Guest    7/13/2018

When the WannaCry ransomware attacked companies all over the world in 2017, experts soon realized it was meant to be stopped by regular updating. Even…

Read More

More Intelligence About The New Intelligence

By: Rich Tehrani    7/9/2018

TMC recently announced the launch of three new artificial intelligence events under the banner of The New Intelligence. I recently spoke with TMC's Ex…

Read More

Technology, Innovation, and Compliance: How Businesses Approach the Digital Age

By: Special Guest    6/29/2018

Organizations must align internally to achieve effective innovation. Companies should consider creating cross-functional teams or, at a minimum, incre…

Read More

Contribute Your Brain Power to The New Intelligence

By: Paula Bernier    6/28/2018

The three events that are part of The New Intelligence are all about how businesses and service providers, and their customers, can benefit from artif…

Read More

TMC Launches The New Intelligence - an Unparalleled AI and Machine Learning Conference & Expo in Florida

By: TMCnet News    6/28/2018

TMC announced the launch of The New Intelligence conference and expo - The Event Powering the AI Revolution. This exciting new event will take place o…

Read More