This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Five Dumbest Things on Wall Street This Week

2. Mailing It In

AOL is ready to get mail at an exciting new address.

The struggling Time Warner (TWX) unit rolled out a host of changes this week aimed at building its lagging Internet advertising business.

AOL realigned its ad network into a new entity called Platform A, which the company promises "will offer advertisers access to the most sophisticated targeting and measurement tools available in the marketplace." AOL also set a distribution agreement with Hewlett-Packard (HPQ) and moved its headquarters to New York from Dulles, Va.

"New York City is the center of advertising," said AOL chief Randy Falco, "so it makes perfect sense to locate our corporate headquarters here."

It really does, though naysayers might dwell on the timing. Years ago AOL was the pioneer in the Internet access business. Its "You've got mail" slogan became a familiar catchphrase and the title of a popular movie.

But for all its success, AOL failed to quickly respond to the rapid expansion of Net advertising. That cleared the way for the rise of Yahoo! (YHOO) and, of course, Google (GOOG).

Even though its rivals' gains long ago relegated AOL to the status of mere curiosity, execs continue to labor under the impression that they're on the cutting edge.

"With these changes," Time Warner operating chief Jeff Bewkes said, "Randy Falco, Ron Grant and their team have positioned AOL to benefit fully from the trends that are reshaping the online advertising business and to expand AOL's leadership in it."

AOL has got mail, but what it needs is a clue.

Dumb-o-Meter score: 88. How does AOL plan to "grow its advertising business and increase the size and engagement of its worldwide audience"? Why, in part by "right-sizing the company's cost structure," of all things.

2 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs