AOL, the publisher of websites such as the Huffington Post and TechCrunch, climbed the most in more than four months after Barclays said profit will grow faster than analysts’ estimates.
AOL surged 8.4 percent to $39.20 at the close, the biggest increase since Nov. 6.
Cost-cutting and modest revenue growth are helping AOL boost profits, Anthony DiClemente, a Barclays analyst, said in a research note. The company can add $100 million of annual profit alone if it shuts down its local-news network, Patch, or breaks even with the division by 2014, DiClemente said.
Profit will jump 34 percent this year to $441 million, leaving out interest, taxes, depreciation and amortization, Barclays estimated.
AOL’s US advertising business ranks fifth among major competitors.