AOL stock was already up huge year-over-year, when it reported earnings on February 8.
Since then, it's up 25%.
Ken Sena of Evercore Partners has a theory on why.
On February 8, AOL reported its quarterly financials in a new way – breaking its business into three segments: Membership Group, Brand Group, and AOL Networks.
Doing so has provided investors greater clarity into which parts of the business are growing, and which provide baseline, dependable value.
Wall Street loves to bet on companies that are showing accelerating momentum.
By segmenting its revenue reporting in this new way, AOL has exposed these investors to the part of its business that is achieving those things.
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