AOL Inc. (AOL): Today's Featured Internet Loser

AOL ( AOL) pushed the Internet industry lower today making it today's featured Internet loser. The industry as a whole closed the day down 0.2%. By the end of trading, AOL fell 35 cents (-1.3%) to $26.76 on average volume. Throughout the day, 1.5 million shares of AOL exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $26.60-$27.49 after having opened the day at $27.03 as compared to the previous trading day's close of $27.11. Other company's within the Internet industry that declined today were: Friendfinder Networks ( FFN), down 10.9%, ExactTarget ( ET), down 6.2%, Authentidate Holding Corporation ( ADAT), down 5.8%, and Rediff.com India ( REDF), down 5.8%.

AOL Inc. operates as a Web services company that offers a suite of brands and offerings for the worldwide audience. Its business spans online content, products, and services for consumers, publishers, and advertisers. AOL has a market cap of $2.44 billion and is part of the technology sector. The company has a P/E ratio of 84.1, below the average internet industry P/E ratio of 86.9 and above the S&P 500 P/E ratio of 17.7. Shares are up 72.7% year to date as of the close of trading on Tuesday. Currently there are three analysts that rate AOL a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates AOL as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

On the positive front, SINA Corporation ( SINA), up 11.1%, Demand Media ( DMD), up 7.5%, Groupon ( GRPN), up 7.2%, and Renren Inc ADR ( RENN), up 7%, were all gainers within the internet industry with NetEase ( NTES) being today's featured internet industry winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider First Trust Dow Jones Internet Idx ( FDN) while those bearish on the internet industry could consider ProShares Ultra Short Technology ( REW).
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