AOL and the Case Against Efficient Market Theory

Photograph by Scott Eells/Bloomberg

This time last week, I, like nine out of every 10 investors, believed AOL was a dead-end investment. How could it not be? This is no longer a 56k, dial-up world, when those ubiquitous AOL disks inundated mailboxes. AOL botched the chance to morph into a broadband player with its spectacularly bad marriage to Time Warner. AOL is behind on social media, and is struggling to compete for ad dollars with Google and Facebook. Its sales declined in each quarter last year.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.