Earthlink Stock - no one's excited

Most investors aren't too enthused about Earthlink stock (ELNK). The company has long had a habit of investing a ton of capital, and not receiving too high of an ROI. This trend has continued in recent years, with no signs of abating. A recent article in the Fool tore into the question of how good of an investment ELNK stock is.

EarthLink experienced a 55% decline in free cash flow to $20.2 million for the quarter. Indeed, the company continues to plow money into its transformation and growth initiatives into broadband, mobile, and voice applications -- and its cash reserve continues to dwindle (down 61% to $158.2 million on a year-over-year basis). These strategies are nothing new, of course -- check last quarter's results.

Of course, Earthlink did announce higher broadband revenues, but the current numbers won't wow anyone. They need to prove they can use their capital judiciously, and actually make some profits first.