Why the New AOL Shares Aren't so Appealing

Early investors might profit from the AOL's return as an independent company -- but its long-term prospects aren't promising.

America Online stock, which went public in 1992, made many early investors rich. Shares soared more than 10,000% over the next seven years as the company introduced millions of people to the Internet. But AOL, as it is now known, is unlikely to do the same for current investors. In fact, we think AOL faces a daunting future in its return as an independent company.

With its spinoff from Time Warner completed, the new AOL (symbol AOL) began trading for the first time as an independent entity on December 10. The stock, which had been trading on the New York Stock Exchange on a “when-issued” basis since November, opened at $23.39, then remained fairly flat for the rest of the day. It closed at $23.52 on light volume.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Contributing Editor, Kiplinger's Personal Finance