AOL Shares Plunged: What You Need to Know

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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 (NYS: 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.

Interested in more info on AOL?Add it to your watchlist.



At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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