Hopes that AOL might be gearing up for a comeback appear to have been dashed. Shares of the outfit are still falling after the Internet company lowered its guidance for an adjusted income figure and said it saw a slowdown in June.

The outfit had not done that badly. It had posted a smaller net loss and better-than-expected revenue for the second quarter,  the company increased advertising revenue for the first time since 2008. However, shareholders were not buying that. In fact they were mostly selling what they had.

Most analysts said that the second-quarter results showed that while, it is still struggling to revitalise its business. AOL bought The Huffington Post website this year for $315 million and the technology blog TechCrunch last year, adding them to a stable that currently includes more than 50 websites.