August 10, 2011
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of AOL (NYSE: AOL ) continued their slide a day after reporting lousy second quarter results. Analysts at Credit Suisse cut their price target for the stock.
So what: Higher costs, lower revenue. That’s the AOL story in a nutshell, and it’s one that Credit Suisse didn’t like. The firm now sees AOL topping out at $15 a share and rates the stock “neutral,” TheStreet.com reports.
Now what: I’d love to tell you that today’s better-than-10% slide in AOL shares is a buying opportunity, but I don’t believe it is. I’ve been down on the stock for months. If anything, I believe we’re seeing the beginning of a downturn that will force still more upheaval at the company. Do you agree? Disagree? Weigh in using the comments box below.
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