AOL
AOL Inc.
TMT
02/24/2014
Presented
| Date | 02/19/2014 |
| Price | $45.06 |
| Market Cap | $3.57B |
| Ent Value | $3.48B |
| P/E Ratio | 26.72x |
| Book Value | $30.65 |
| Div Yield | N/A |
| Shares O/S | 79.20M |
| Ave Daily Vol | 1,410,000 |
| Short Int | 5.73% |
Current
| Price | $49.99 |
| Market Cap | $3.92B |
| AOL Inc., a Web services brand company, offers a suite of online content, products, and services to consumers, advertisers, publishers, and subscribers worldwide. The company’s Brand Group segment provides content created by journalists, politicians, celebrities, academics, policy experts, freelance writers and bloggers, aggregated content from third parties, and user-generated content through AOL.com and The Huffington Post sites, as well as to niche audiences on StyleList and TechCrunch branded properties. It also operates Patch, a community specific news and information platform; and MapQuest, which offers online mapping and directions services. In addition, this segment consists of entertainment brands, such as Moviefone, AOL Music, and Cambio; technology and marketplace brands comprising Engadget, DailyFinance, AOL Autos, and AOL Travel; and lifestyle brands, including Games.com, Kitchen Daily, Homesessive, and Makers. AOL’s Membership Group segment includes subscription access service, which provides online services, including telephone dial-up access to the Internet; and offers various communications tools, such as AOL Mail and AIM, which are email and instant messaging services. The company’s AOL Networks segment offers advertising, and online video and content distribution through various applications comprising Advertising.com, goviral, AOL On, ADTECH, Pictela, and Sponsored Listings, as well as AdLearn technology to manage, optimize, and analyze online marketing campaigns. The company distributes its AOL properties through subscription access services; open Web and the Apple App Store; toolbars, widgets, co-branded portals, Websites, mobile aggregators, third party Website, and social networks; and agreements with manufacturers of digital devices and other consumer electronics, and mobile carriers, as well as through search engine marketing and optimization distribution methods. AOL Inc. was founded in 1985 and is headquartered in New York, New York. |
Please note, this idea was updated on 5/14/2014 and can be read here: Long - AOL Inc. (AOL) (Update)
Highlights
The presenter likes the present risk/ reward with shares of AOL, and believes the company is particularly well-positioned in the market. At ~7x and 6.5x 2014 and 2015 EBITDA estimates, respectively, shares are cheap and reflect the perception that AOL is still an old internet dial-up company. However, the presenter is long shares and his bullish thesis is based on his belief that Tim Armstrong is an excellent leader who appears to have made some prescient acquisitions – including his mid-2013 purchase of Adapt.tv for $405 million; as well as the secular trend toward programmatic advertising and video.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.