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Angie’s List (ANGI) Plummets 16 Percent After Slashing Membership Costs

  +Follow October 3, 2013 12:23PM
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In a bid to attract customers to their contractor-review site, on Oct. 3 Angie’s List Inc. (ANGI) unexpectedly cut membership costs in 75 percent of markets, lowering the cost of an annual membership from $40 to $10. The price slash comes mere days after CTO Manu Thapar abruptly left, shaking investor confidence in the tech company.

Analysts, however, remain bullish on the Indianapolis-based site. 13 out of 20 analysts polled by Thompson Reuters give the stock a rating of "buy," and the consensus price target remains 40 percent higher than the current price.

Investors feel much differently. 37.91 percent of the float on the stock is being sold short, the highest rate of any stock currently being traded on the US markets.

Even before the membership price slash and Thapar’s departure, Angie's List bears had questioned the sustainability of a site that is increasingly losing market share to the wildly popular Yelp Inc. (YELP) . On In their Sept. 10 article “Ain’t it Time to Say Goodbye to Angie’s List” Forbes writer David Trainer pointed out that the company has never made a profit, and is doomed by “its complete lack of profitability and shaky business model.”

CEO William Oestrele has waved off fears that the company is slipping, claiming the new membership model is merely a test as executives continue "trying to understand the impact on member acquisition and retention." Investors, however, are clearly worried that it the move is less likely experimentation and more likely necessity prompted by slipping membership rates.

Despite analyst bullishness that puts a consensus price target of $29 a share on Angie’s List, for now the market is definitely skittish on the stock. The stock plummeted 16.25 percent to hit $17.58 a share.

 

(image courtesy fo Flickr)

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Results for ANGI
Deep Dive
24 Apr 15 16:52:00
$ANGI Angie’s List (ANGI) Earnings Analysis By the Numbers http://t.co/MRomM5Z2tM http://t.co/qivdT238co
dailystockplays.com
24 Apr 15 16:23:55
NR7 ID http://t.co/qYk0HwnAbl $UCO $WFT $XLP $HYG $DFS $DIA $SYY $HON $PDS $BRK-B $ANF $LEN $EWC $QIHU $VTI $PGR $ANGI $IWD
Jorey Ramer
24 Apr 15 10:04:49
Analysts believe that an Angies List buyer will emerge before a new CEO is named. $ANGI $BABA $EBAY http://t.co/cb5Gjh6exd via @benzinga
FlashRatingsHOT
24 Apr 15 10:00:55
$ANGI has 3 analyst ratings in the last 7 days. Median target: $8 (26% upside). View here: https://t.co/zClQxL7HgP #ANGI
Deep Dive
24 Apr 15 08:55:32
$ANGI Angie’s List (ANGI) Earnings Analysis By the Numbers http://t.co/MRomM5Z2tM http://t.co/f2zigVHU1l
Breaking News
24 Apr 15 08:35:02
$ANGI: Angie's List Price Target Increased to $8.00 by Analysts at Deutsche ...: http://t.co/GLxJitWffu
Joe Young
24 Apr 15 08:17:40
7 Amazon Innovations Since Its Last #Earnings Report $AAPL $AMZN $ANGI http://t.co/BPLYESyNzh
#HelpYouGetGAINS
24 Apr 15 07:42:01
RT @WrigleyTom: Earnings Calendar $MLNX $CMG $CREE $ISRG $VMW $YHOO $ANGI $EBAY $FFIV $FB $QCOM $CAT $AMZN $GOOG $JNPR $MSFT $P $SBUX http:…
shuvasha
24 Apr 15 05:30:35
RT @Benzinga: 7 Amazon innovations since its last #earnings report $AAPL $AMZN $ANGI http://t.co/oJeNQ0K9Wx
Benzinga.com
24 Apr 15 05:25:04
7 Amazon innovations since its last #earnings report $AAPL $AMZN $ANGI http://t.co/oJeNQ0K9Wx
Cutlass
24 Apr 15 04:30:53
RT @MsPutOptions: $ANGI using the 50 DMA as a source of support
msputoptions
24 Apr 15 02:00:07
$ANGI using the 50 DMA as a source of support
US Banking News
24 Apr 15 01:12:18
Angie's List $ANGI – Investment Analysts’ Weekly Ratings Changes http://t.co/szTR3Uh9gb
Ticker Report
24 Apr 15 00:56:17
Angie's List $ANGI – Investment Analysts’ Weekly Ratings Changes http://t.co/Lf3WBEjp56
AwesomeCalls
23 Apr 15 20:49:49
Thank you Frank $MOBL today, Yup $ANGI kick ass call to short! Love that Trade! Lets see what tomorrow brings us! https://t.co/lEGHNKLfVj
relative deep value
23 Apr 15 15:50:50
RT @WarrenPuffett9: I like : $GNW, $LL, $ANGI, $CLF, $ANR, $BTU, $CRCM, $OCN, $XCO, $CHK, $NAV, $FDML, $NBG, $PBR, $VALE, $SNTA $EYES $OVAS…
dailystockplays.com
23 Apr 15 15:02:24
Enter Ichimoku http://t.co/OS22NJ8y9N $XRX $XLU $LVS $EXC $NVDA $TCK $GPK $TSO $IYR $MAS $LLTC $FOX $PLD $RIO $ANGI $IAG $CTL $HMSY
danrocks
23 Apr 15 14:36:06
$ANFI Yield Click Here: http://t.co/xcGhOREYXh Also See: $FSL $ANGI $PE $STXS ~
Alaa Badr
23 Apr 15 14:35:13
7 Amazon Innovations Since Its Last Earnings Report $AAPL $AMZN $ANGI http://t.co/GKGlszVvbX via @benzinga
US Banking News
23 Apr 15 13:28:34
Deutsche Bank Increases Angie's List Price Target to $8.00 $ANGI http://t.co/zjGHU56aMf
Instrumental Data
23 Apr 15 13:22:14
Angie's List, Inc. $ANGI 10-Q now available
Stocks News&Markets
23 Apr 15 13:17:38
$ANGI - Quarterly Report (10-q) http://t.co/zox2RmVrXy
NASDAQ
23 Apr 15 13:17:36
$ANGI - Quarterly Report (10-q) http://t.co/TfIFLFENy4
john smith
23 Apr 15 13:17:11
$ANGI - Quarterly Report (10-q) http://t.co/kMGw6pOBDd
StockNewsWires
23 Apr 15 13:15:03
$ANGI: New SEC Filing for ANGI: Form S-8 (No. 0001491778-15-000081): http://t.co/DtktlEszfl
Latest SEC Filings
23 Apr 15 13:14:38
NEW SEC Filing for $ANGI filed a moment ago: http://t.co/iudLbVpyru http://t.co/dtjsUXn6bm
Stocks News&Markets
23 Apr 15 13:13:15
$ANGI - Securities Registration: Employee Benefit Plan (s-8) http://t.co/zFHg50s0Vd
john smith
23 Apr 15 13:13:11
$ANGI - Securities Registration: Employee Benefit Plan (s-8) http://t.co/awuJOwBNTh
NASDAQ
23 Apr 15 13:13:07
$ANGI - Securities Registration: Employee Benefit Plan (s-8) http://t.co/i2Ujy1i3VH
Stock Trade Alerts
23 Apr 15 13:08:29
How Sonar top NASDAQ looked @ today's open: $VLTC $GBSN $PKT $MOBL $CNAT $ENZN $ANGI $CAKE… | SH #TradeAlerts ➡ via http://t.co/LHfNLyERf1
IH NASDAQ OMX
23 Apr 15 13:01:30
$HTWR News Click Here: http://t.co/Veib4zXyYq Also See: $NEU $XL $GPRE $ANGI ~
Stock Horizon LLC
23 Apr 15 13:00:47
How Sonar top NASDAQ looked @ today's open: $VLTC $GBSN $PKT $MOBL $CNAT $ENZN $ANGI $CAKE $MKSI $DRNA http://t.co/ZsJ8IywzRp
Emylers
23 Apr 15 12:12:14
$ANGI Shares Click Here: http://t.co/tPp55PWvgL Also See: $SKX $KEYS $CAJ $NOK ~
Mandar Samant
23 Apr 15 12:08:13
7 Amazon Innovations Since Its Last Earnings Report $AAPL $AMZN $ANGI http://t.co/dq3Ffk7t0D via @benzinga
Sleek Money
23 Apr 15 11:35:24
Angie's List Price Target Raised to $8.00 $ANGI http://t.co/JMv27hhsG4
Stocks News&Markets
23 Apr 15 11:32:06
$ANGI - Angie's List Price Target Raised to $8.00 (ANGI) http://t.co/Gx2zQhFzYd
john smith
23 Apr 15 11:31:20
$ANGI - Angie's List Price Target Raised to $8.00 (ANGI) http://t.co/hB025KJX9f
NASDAQ
23 Apr 15 11:31:15
$ANGI - Angie's List Price Target Raised to $8.00 (ANGI) http://t.co/IzZeT3vIZk
Ticker Report
23 Apr 15 11:26:57
Angie's List Price Target Raised to $8.00 $ANGI http://t.co/NXn31EnTgV
US_proptrader
23 Apr 15 11:09:36
$AMCN $ANGI $AUQ $CCJ $CDE $CMCM $HL $ONVO $SFUN autocharts @ http://t.co/cLiki48C5r
The Doalt
23 Apr 15 11:07:00
(-$59.40) Trading recap April 22, 2015 http://t.co/nPTe70EYyL $STUDY $ANGI $GLUU $ONVO
StockHead
23 Apr 15 10:26:45
$ANGI just went green
IH NASDAQ OMX
23 Apr 15 10:26:09
$VIMC % Change Click Here: http://t.co/jLaJ1BOKdY Also See: $PTR $CNAT $TSL $ANGI ~
US_proptrader
23 Apr 15 10:24:37
$ADXS $ANGI $BBG $CLF $DLB $NRP $SFUN $SSE $TXMD autocharts @ http://t.co/cLiki48C5r
Sleek Money
23 Apr 15 10:20:40
Angie's List Lowered to Underperform at Northland Securities $ANGI http://t.co/6ZHdQDiZLJ
ProTradersNews
23 Apr 15 10:20:03
$ANGI: Stock Insights on Angie's List Inc (NASDAQ:ANGI): http://t.co/gC3RPtNbQZ
Breaking News
23 Apr 15 10:15:02
$ANGI: Angie's List Lowered to Underperform at Northland Securities (ANGI): http://t.co/5UGcsuHCFC
Ivan Bunin
23 Apr 15 10:14:46
$ANGI Stopped my long to the penny/low. this is for you https://t.co/aLU0PAGqGf
Media Sentiment
23 Apr 15 10:06:29
$ANGI received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 464
PolgarStocks
23 Apr 15 10:05:16
$ANGI Financials Click Here: http://t.co/2zYxr50lFG Also See: $IT $RMTI $BAS $DHI ~
				
				
  +Follow October 3, 2013 12:23PM
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