The long term AOL stock price history is very interesting to analyze.
It is the same with all the other companies.
But AOL is different because it has had more hard occasions compared to companies like Google, Apple or Microsoft.
You can learn a lot of things if you analyze the AOL stock price history.
The reason is this company went almost bankrupt and for such a long time the analysts were used to know it as a bankrupt company that had to be ignored by the investors.
But good and on time decisions can recover even a dead company.
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Analyzing the AOL Stock Price History
There are so many big lessons to learn from AOL stock price history:
What you see on the left side of the AOL stock price history, is the real example of a company and business that was not scalable and their managers and owner didn’t try to scalable it.
As I have explained here, a business that is not scalable is doomed, even if it keeps on making profit for a while.
Once stronger competitors show up, it will slow down and will be kicked out of the game after a while.
As you see on the AOL stock price history chart, AOL makes a peak at $28.45 on Apr 23rd 2010, but starts struggling and goes down.
It goes up once again and makes a lower high at $26.68 on Oct 29th, 2010.
But then it collapses strongly, breaks below the support line and after breaking below $17.18, it goes down like crazy and gets close to zero.
The reason was that for such a long time, AOL was not offering anything more than what it was used to be offering during the past several years.
They had a website and search engine that used Google search system, some home and business Internet service providing, email and things they were used to offer for such a long time.
Stronger competitors like Yahoo started offering the same services and attracted AOL’s customers.
Even they called the AOL customers and ask them to cancel the AOL Internet service and sign up for their service with a lower price.
AOL was losing its customers like crazy but they didn’t take any action at all.
Maybe they have been waiting for the problem to be resolved by itself.
The AOL stock price history says that investors were keep on selling their share and the AOL market became bearish (more sellers than buyers).
It was too late to take any actions toward making the customers back.
They had to think about it sooner.
You can’t recover a business that has already started going down like crazy.
You have to prevent it from going down before it goes down.
The other important thing is that you can’t recover a falling and struggling business through doing the same things you were used to do and through offering the products and services you were used to offer (it is insane to do that according to Einstein).
If these things could save the business, it wouldn’t be collapsing now.
You have to do something new that you haven’t been doing before:
“Insanity: doing the same thing over and over again and expecting different results.” – Albert Einstein
According to the AOL stock price history, before AOL reached $11.78 on Aug 12th, 2011, they took an important step which was different from all they had been doing until that time.
On February 7th 2011, they bought HuffingtonPost.com that was a news and idea portal.
AOL agreed to pay $315 million to buy HuffingtonPost.com.
That money was almost the only money they had and taking that step was the last thing they could do to save the company.
Fortunately, it worked and AOL started getting off the ground again.
It broke above the resistance line on Jan 27th 2012 and started a strong uptrend as you can see on AOL stock price history.
The big lesson here that can be learned from the AOL stock price history’s complicated ups and downs, and use it in your life and business is that your life and your business will not get better if you don’t take some big steps that you had never taken before.
Your life will remain the same as it is now, if you don’t take some strong actions that you haven’t taken before.
That was the lesson you could learn from the left side of the AOL stock price history chart.
What the middle and the right side teach you is even more important:
AOL got a lot better on 2012 and 2013, but it is moving sideways now.
It means what they did on February 7th 2011 to save the company, is not going to push and motivate the company forever.
That was the remedy that worked at that time, but it is losing its effect now.
If they don’t take some new, strong and serious actions again, the AOL sideways market will break below the support lines and levels and will collapse again.
To make a business scalable,
- Expand it by adding more products and services.
- Keep adding more and better products and services forever.