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

  +Follow October 3, 2013 12:23PM
Tickers Mentioned:

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)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for ANGI
Jacob Harper
25 Oct 14 22:00:17
Review Sites Yelp, Angie’s List Both Disappoint Market $yelp $ANGI http://t.co/yMFfZdwLiQ
Auto Binary option
25 Oct 14 17:37:56
RT @timothysykes: See my free 6-hour Moscow Speech http://t.co/avffgsI2RN EVERYONE on $FB $TWTR $LNKD $ANGI $YY $MEET $MOBI go $STUDY, you'…
25 Oct 14 17:35:10
RT @timothysykes: See my free 6-hour Moscow Speech http://t.co/avffgsI2RN EVERYONE on $FB $TWTR $LNKD $ANGI $YY $MEET $MOBI go $STUDY, you'…
Timothy Sykes
25 Oct 14 17:31:58
See my free 6-hour Moscow Speech http://t.co/avffgsI2RN EVERYONE on $FB $TWTR $LNKD $ANGI $YY $MEET $MOBI go $STUDY, you'll laugh
25 Oct 14 13:30:03
Downgraded: $CQB $CAB $IG $JAKK $IT $BDBD $YELP $DDD $ANGI $ADHD $GLF $KO $CIE $MJN $PNC http://t.co/XQITF0lRKD #stockmarket #watchlist
Stock Relay
25 Oct 14 12:27:54
$SPAN E.P.S. Click Here: http://t.co/I2GV7IY8Ey Also See: $HYZD $ANGI $ILMN $MVC ~
%Útó $áñgí%
25 Oct 14 02:43:38
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Investor Wand
25 Oct 14 02:35:12
Is $ANGI a SELL? Raymond James thinks so:http://t.co/oAMRgXZS64
25 Oct 14 01:30:03
Downgraded: $CQB $CAB $IG $JAKK $IT $BDBD $YELP $DDD $ANGI $ADHD $GLF $KO $CIE $MJN $PNC http://t.co/Vv2VEn80mr #wallstreet #markets #mkt
24 Oct 14 16:36:01
Angie's List Sets New 12-Month Low at $6.17 $ANGI http://t.co/ju2qgdrYP9
US Banking News
24 Oct 14 16:29:50
Angie's List Sets New 12-Month Low at $6.17 $ANGI http://t.co/D4y658AWB8
24 Oct 14 15:12:28
$ANGI Is this dead yet? What's the status if this crazily stupid m&a ?
24 Oct 14 13:30:06
Downgraded: $CQB $CAB $IG $JAKK $IT $BDBD $YELP $DDD $ANGI $ADHD $GLF $KO $CIE $MJN $PNC http://t.co/XQITF0lRKD #analytics #dow #stockpicks
Leilani Pips
24 Oct 14 13:26:44
24 Oct 14 12:10:19
$ANGI $AUQ $EGO $GERN $MACK $NPSP $RYL $SID $VNDA autocharts @ http://t.co/hj7PGeTQk3
24 Oct 14 10:21:05
Angie's List Lowered to “Underperform” at Raymond James $ANGI http://t.co/LzzmrJXWb1
24 Oct 14 08:25:56
Angie\'s List Inc: The stock is testing its lows. $ANGI http://t.co/6lsRaKm1Lv http://t.co/T4i0Hm7L2g
Matthew Coe
24 Oct 14 08:13:34
@CramersShirt @TFMkts @carlquintanilla @karaswisher @jonfortt I guess that makes $ANGI Ella Fitzgerald...
Large Void Bot
24 Oct 14 08:09:13
New 52wk Lows: $ANGI
CapCube 2.0
24 Oct 14 06:29:18
Despite the market march to / near ATH's, sticking w/ over valued momo shorts has been paying off $AMZN $PCLN $CMG $YELP $Z $P $ANGI $LNKD
24 Oct 14 05:28:05
RT @jbooton: #Millennials are leaving #Yelp and Angie’s List. Here's why: http://t.co/7L9RbE8GxF $YELP $ANGI http://t.co/3WbXHrr6Uj
US Stock Ratings
24 Oct 14 04:52:03
Needham downgrades $ANGI from Buy to Hold http://t.co/Zkj5wKJxtH
24 Oct 14 04:39:49
$ANGI: Needham cuts to Hold
24 Oct 14 02:33:45
3-star analyst Kerry Rice from Needham rated $ANGI w/a HOLD. http://t.co/VubNMDJpxn #NASDAQ #stocks
24 Oct 14 01:30:03
Downgraded: $BDBD $YELP $DDD $ANGI $ADHD $GLF $KO $CIE $MJN $PNC $CFN $AMD $URBN $RIO $NFLX http://t.co/XQITF0lRKD #daytrader #mkt #stock
Stock Relay
24 Oct 14 01:16:06
$ADAT Filings Click Here: http://t.co/Zzcpu1lmub Also See: $ANGI $WIRE $DBL $PNTR ~
23 Oct 14 22:54:52
During this #Ebola outbreak, $ANGI investors will also want to buy $SMED. They handle medical and hazardous waste http://t.co/vTV3wPBONo
23 Oct 14 20:33:18
0-star analyst Blake Harper from Wunderlich rated $ANGI w/a HOLD. Blake has a 33.3% success rate http://t.co/VubNMDJpxn #NASDAQ
23 Oct 14 19:28:29
5-star analyst Aaron Kessler from Raymond James rated $ANGI w/a SELL. Aaron has a +18.5% avg rtrn http://t.co/VubNMDJpxn #NASDAQ
23 Oct 14 17:48:50
RT @jbooton: #Millennials are leaving #Yelp and Angie’s List. Here's why: http://t.co/7L9RbE8GxF $YELP $ANGI http://t.co/3WbXHrr6Uj
US Banking News
23 Oct 14 16:53:31
Angie's List Cut to “Hold” at Wunderlich $ANGI http://t.co/LRTx8xXrMn
Jack Be Trader
23 Oct 14 16:22:58
Commented on StockTwits: lol then go long $ANGI http://t.co/s3EBT9Vlas
Leilani Pips
23 Oct 14 14:11:07
EARNINGS CALL-8/10 @GuruOfGanja $YHOO calls $AAPL calls $CMG puts $ANGI puts $GSK puts $MCD puts $AMZN P $SWFT C WRONG $NFLX $YELP
Russ A. Hatfield Jr.
23 Oct 14 13:27:45
Love the Monday morning QBs, the Day-After "experts" | Millennials are leaving Yelp and Angie’s List http://t.co/VFguStAHHv $YELP $ANGI
PM Digital
23 Oct 14 12:30:09
RT @jbooton: #Millennials are leaving #Yelp and Angie’s List. Here's why: http://t.co/7L9RbE8GxF $YELP $ANGI http://t.co/3WbXHrr6Uj
23 Oct 14 12:10:06
Downgrades 10/23: $VOC, $HLSS, $ANGI, $MERC, $GLF, $YELP, $BBT, $BA, $TUP, $BDBD, $OC, $CTXS, $UBSH http://t.co/4i7kwjwvcU
Zubeyr Kamil Açıksar
23 Oct 14 12:00:51
RT @jbooton: #Millennials are leaving #Yelp and Angie’s List. Here's why: http://t.co/7L9RbE8GxF $YELP $ANGI http://t.co/3WbXHrr6Uj
Jennifer Booton
23 Oct 14 11:59:14
#Millennials are leaving #Yelp and Angie’s List. Here's why: http://t.co/7L9RbE8GxF $YELP $ANGI http://t.co/3WbXHrr6Uj
Paul Loffarelli
23 Oct 14 11:21:23
$ANGI down the drain yesterday, today it's $YELP
23 Oct 14 11:20:40
ANGI 6.785 Stock Charts $ANGI Angie's List Inc. (NASDAQ) Last Updated: 10/23/2014 13:20:40 ANGI Stock Chart - http://t.co/7jG1oVG3F9
23 Oct 14 10:35:26
Angie's List Lowered to “Hold” at Needham & Company LLC $ANGI http://t.co/jfe9vS9BYW
23 Oct 14 10:35:26
Angie's List Downgraded to Neutral at Piper Jaffray $ANGI http://t.co/yFy6OoV9PH
Ticker Report
23 Oct 14 10:13:40
Angie's List’s “Outperform” Rating Reaffirmed at Barrington Research $ANGI http://t.co/XKdv3zGrQn
Sleek Money
23 Oct 14 10:08:54
Wunderlich Downgrades Angie's List to Hold $ANGI http://t.co/qirQ3JonzZ
23 Oct 14 10:04:01
Angie's List Downgraded to “Underperform” at Raymond James $ANGI http://t.co/yty47dGwF1
US Banking News
23 Oct 14 09:53:34
Angie's List Downgraded by Needham & Company LLC to “Hold” $ANGI http://t.co/07BB0LiPzV
23 Oct 14 09:44:35
$ANGI has 5 analyst ratings in the last 2 days. Median target: $7.5 (11% upside). View here: https://t.co/ljBpYypL5g
23 Oct 14 09:32:04
Notable Analyst Rating Changes 10/23: $FITB $DOW $TSCO Upgraded; $ANGI $BA $BBT Downgraded http://t.co/v7wS3Zt1bz
Neeraj Joshi
23 Oct 14 09:05:09
$YELP down 16%...are there really people out there that trust reviews on $YP or $ANGI more?!? Don't think so. #TakeoutTarget
Ben Hoben
23 Oct 14 08:54:40
@optionvoyeur You've called $ANGI that thing's a gonner.
  +Follow October 3, 2013 12:23PM



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