AOL’s advertising business, which is supposed to be its engine going forward, did even worse. Its revenues declined by $110 million

And yet, AOL's share price is up marginally today. I very nearly shorted AOL ahead of last quarter's earnings -- and, it actually was a good call.

I thought better of it when I realized the market has no idea how to price the withering remains of AOL -- I would even bet most investors couldn't tell you what AOL's core business is anymore. You could have argued with me last quarter, but I think the proof is in the market reaction to Q2 earnings.

Everyone in the ad space is seeing a rebound, except AOL. That alone should speak volumes. Someone should call Carol Bartz at Yahoo! and ask her if she's still so confident in that cheap-content strategy she's borrowing from Armstrong.

Check out the really painful looking revenue chart at TechCrunch.