>>AOL first and foremost is adored by Wall Street. Out of the 22 Brokers who cover it, 14 issue a Strong Buy, 5 issue a Moderate Buy, and 3 issue a Hold.<<
Rocky -
No question that AOL is currently a Wall Street darling. But oh, how quickly that can change. The analogy between AOL and Netscape is a good one.
Actually, the picture you paint of AOL's fundamentals is just a tad bleaker than the reality. Yes, they have a loss for the trailing four quarters, but the last three quarters were all profitable, with EPS increasing at a rapid clip. Most likely, the analysts who rate AOL a Buy believe that the business model for this kind of company demands a lot of capital outlay before profitability sets in.
If this quarter's report shows the same level of EPS growth, the stock will probably be able to maintain its sweetheart status. If not, well, it could get ugly.
Here's a good question for you. When a stock is at its all-time high, is that a good time to buy?
- Allen |
