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AOL Turnaround?

By - October 28, 2003

First a piece in Fortune predicting a turnaround, mainly due to cost cutting and the rising tide of online advertising, then this piece in the Times today. It again points to the rising tide, and claims AOL may have an ace up its sleeve – a positive surprise in the form of profit growh, due in large part to its relationship with Google and its ability to sell contextual positioning of video to big ticket advertisers like carmakers. About time, I’d say, and encouraging news. If AOL has a big Q4, there may yet be pop to the parent company’s stock. A downside: As with Yahoo and Overture, AOL may become too dependent on Google for its revenues/margins.

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