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Is AOL a Hot Online Play?

AOL (AOL) gained 9% Tuesday after the company reported third-quarter revenues of $531.7 million, well above the $521.6 analysts expected. The stock, which was once written off for dead has managed to gain 173% over the last 52 weeks.

A lot of investors look to Google (GOOG) or Apple (AAPL) for their technology exposure, but perhaps AOL is where we should be looking. There are several reasons AOL could be the best tech stock for today.

  • It has already lost so many subscribers that the declines going forward will not weigh materially on ad revenues
  • Hiring the former president of Google’s America division brings fresh vision and enthusiasm to the company
  • Recent changes to AOL’s email interface are bringing new users to the service
  • Its developing “On”, its own video portal to challenge YouTube
  • Ad revenues rose more in the third quarter than we have seen in seven years

AOL is hitting on all cylinders. As hard as it may be to believe, AOL is the hottest tech stock these days, and there are plenty of reasons to expect more upside.

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va. His articles typically cover big-picture events and forecasting what impact they will have on the stock market. In addition to writing for Fresh Brewed Media, Michael also wrote for AOL's BloggingStocks for three years, focusing most of his attention on the energy and technology sectors.

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.