AOL takes a tumble

Analyst downgrade hits stock price...

By Sonya Rabbitte, 21 February 2002 11:00

NEWS Shares in AOL Time Warner plummeted up to 10 per cent yesterday after Lehman Brothers downgraded the stock on concerns that the company's growth will slow over the next three years. Shares on the Nasdaq closed 5.2 per cent down at $24.22, and dropped another 0.79 per cent in after hours trading. Over 45 million AOL shares swapped hands yesterday making it one of the most widely traded stocks. Lehman Brothers said it expected AOL's earnings before tax, interest, depreciation and amortisation to slow or decline between 2002 and 2005 as the company expanded in Europe, developed broadband and battled with a slowing narrow band business and a slump in advertising. AOL shares have dropped 64 per cent in value since the company merged with Time Warner over a year ago.

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