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Another Tim Armstrong Public Goof, but the Market Loves AOL Anyway

By Jay Jenkins - Feb 13, 2014 at 8:00PM

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Perhaps its time for AOL to hire a spokesman to handle Tim Armstrong's public communications, yet in spite of his foot-in-mouth remarks the company is doing great.

For any aspiring CEOs out there, here is a quick list of things to avoid:

  • Blaming the President of the United States for cutting employee retirement benefits.
  • Fire a senior employee live on a conference call with more than 1,000 employees listening in.
  • Call an employee's prematurely born child a "distressed baby."
  • Insinuate that such "distressed babies" are justification for reducing employee retirement benefits.

If only AOL (NYSE: AOL) CEO Tim Armstrong would just talk to us before making any public remarks. 

But despite these embarrassing and, frankly, callous remarks, AOL continues to rock 'n' roll behind Armstrong's leadership. The company posted very strong numbers for the fourth quarter of 2012, and Armstrong called 2013 the "most successful year in the last decade" for AOL in the company's prepared earnings release. 

What does it all mean for an investor considering buying into AOL today? The stock has been on a solid bull run since late 2011 and it doesn't seem to be slowing. AOL has reported unique visitor traffic increases for six consecutive quarters now, Q4 revenue was up 13% year over year driven by exceptional growth in the global advertising business.

In the video below, Motley Fool contributor Jay Jenkins breaks down the story -- what happened and why its significant for investors.

To get more business and investing news trending on social media, check out Jay on Facebook here!

Jay Jenkins has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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