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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)

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
Timothy Sykes
31 Oct 14 17:00:57
Learn from my free 6-hour Moscow Speech http://t.co/avffgsI2RN EVERYONE on $FB $TWTR $LNKD $ANGI $YY $MEET $MOBI go $STUDY thoroughly
Stock Signaling
31 Oct 14 16:31:36
Top Stocks (By Trading Liquidity): $CODE $EMES $GBX $SWHC $EOX $REXX $GPRE $AEGR $NLNK $JAKK $ANGI $BWLD $JNS $ADHD $CSLT #markets #nyse
Alysia Sarkisian
31 Oct 14 14:55:26
RT @SeekingAlpha: The Stability Of The Current Tech Market http://t.co/uRkJxq1PVf $AMZN $ANGI $EBAY $GDOT $GOOG $GOOGL $TRLA $XOOM
Quantpost Service
31 Oct 14 14:51:02
$AMZN $EBAY News: "The Stability Of The Current Tech Market $AMZN $ANGI $EBAY …" http://t.co/9ZY8ZBB3Dy Board view: https://t.co/gdwWjmpEHe
Quantpost Technology
31 Oct 14 14:51:02
$GOOG $GOOGL News: "The Stability Of The Current Tech Market $AMZN $ANGI $EBAY …" http://t.co/YAOCI7tr0e Board view: https://t.co/jOJ3ihOOHo
Seeking Alpha
31 Oct 14 14:51:01
The Stability Of The Current Tech Market http://t.co/uRkJxq1PVf $AMZN $ANGI $EBAY $GDOT $GOOG $GOOGL $TRLA $XOOM
Stock Signaling
31 Oct 14 13:31:36
Top Stocks (By Trading Liquidity): $CODE $EMES $GBX $SWHC $EOX $REXX $GPRE $AEGR $NLNK $JAKK $ANGI $BWLD $JNS $ADHD $CSLT #spy #nasdaq #mkt
Banking Privately
31 Oct 14 09:02:40
RT @StockSignaling: Top Stocks (By Trading Liquidity): $GBX $SWHC $EOX $REXX $GPRE $AEGR $NLNK $JAKK $ANGI $BWLD $JNS $ADHD $CSLT $RPRX $DD…
StockSpotter
31 Oct 14 08:57:51
$ANGI up 1.4% to 6.73 possible bullish reversal? #stocks #options #trading http://t.co/d1HkCK9t11
Cary
31 Oct 14 08:50:11
RT @StockSignaling: Top Stocks (By Trading Liquidity): $EMES $GBX $SWHC $EOX $REXX $GPRE $AEGR $NLNK $JAKK $ANGI $BWLD $JNS $ADHD $CSLT $RP…
Stock Signaling
31 Oct 14 07:01:29
Top Stocks (By Trading Liquidity): $EMES $GBX $SWHC $EOX $REXX $GPRE $AEGR $NLNK $JAKK $ANGI $BWLD $JNS $ADHD $CSLT $RPRX #investing #stock
John Turner
31 Oct 14 05:02:32
$ANGI Angie's List adds fewer members; shares plunge http://t.co/P5XLZatWMm
Stock Relay
31 Oct 14 01:07:15
stockblaster14: Stock Alerts: Angie's List Inc (ANGI) 6.64 $ANGI Yelp In http://t.co/lHJBocTJF3
A. Vespasian
30 Oct 14 16:47:43
RT @StockSignaling: Top Stocks (By Trading Liquidity): $GBX $SWHC $EOX $REXX $GPRE $AEGR $NLNK $JAKK $ANGI $BWLD $JNS $ADHD $CSLT $RPRX $DD…
Stock Signaling
30 Oct 14 16:31:20
Top Stocks (By Trading Liquidity): $GBX $SWHC $EOX $REXX $GPRE $AEGR $NLNK $JAKK $ANGI $BWLD $JNS $ADHD $CSLT $RPRX $DDD #swingtrading #spy
Denisa Casement CFRE
30 Oct 14 14:54:49
RT @augieray: YTD, NASDAQ up 9.3%; portfolio of social media stocks down 21%. ($FB, $YELP, $LNKD, $TWTR, $MKTO, $AWAY, $ZNGA, $ANGI, $GRPN,…
ALittleLonger
30 Oct 14 14:36:01
RT @StockSignaling: Top Stocks (By Trading Liquidity): $GBX $SWHC $EOX $REXX $GPRE $AEGR $NLNK $JAKK $ANGI $BWLD $JNS $ADHD $CSLT $RPRX $DD…
Augie Ray
30 Oct 14 14:27:56
YTD, NASDAQ up 9.3%; portfolio of social media stocks down 21%. ($FB, $YELP, $LNKD, $TWTR, $MKTO, $AWAY, $ZNGA, $ANGI, $GRPN, $JIVE)
Stock Signaling
30 Oct 14 13:31:27
Top Stocks (By Trading Liquidity): $GBX $SWHC $EOX $REXX $GPRE $AEGR $NLNK $JAKK $ANGI $BWLD $JNS $ADHD $CSLT $RPRX $DDD #spy #swingtrading
US_proptrader
30 Oct 14 10:43:25
$ANGI $BLDP $EXTR $ODP $PEIX $PGNX $RGLS $VLCCF $WRES autocharts @ http://t.co/hj7PGeTQk3
4-traders.com
30 Oct 14 10:25:03
Angie List : As Angie's lifts corridor, will others follow? http://t.co/SXYlQorS4l $ANGI
ClosingBell
30 Oct 14 09:33:53
Lowest rated stocks on ClosingBell $GPRO $UVXY $GRPN $VIXY $ANGI $ETFC $DAVE $RSH $JDST $HTZ http://t.co/hkzJy8lvoP
Stock Signaling
30 Oct 14 07:02:17
Top Stocks (By Trading Liquidity): $GBX $SWHC $EOX $REXX $GPRE $AEGR $NLNK $JAKK $ANGI $BWLD $JNS $ADHD $CSLT $RPRX $DDD #analytics #trader
Harry Walkman
30 Oct 14 06:32:19
$ANGI Angie's List adds fewer members; shares plunge http://t.co/Ua8McB3809
Clair Voight
30 Oct 14 06:32:17
$ANGI Why Angie's List Keeps Getting Mixed Reviews http://t.co/K2LL3uFuvd
wininstocks2014
29 Oct 14 22:25:37
ANGI 6.575 Stock Charts $ANGI Angie's List Inc. (NASDAQ) Last Updated: 10/30/2014 00:25:44 ANGI Stock Chart - http://t.co/23z5lswxQY
Leilani Pips
29 Oct 14 18:16:31
EARNINGS -12/15 $YHOO $AAPL $CMG P $ANGI P $GSK P $MCD P $AMZN P $SWFT C $BWLD C $INVN P $FB P $BIDU P MISS $NFLX $YELP $TWTR
Hector
29 Oct 14 16:41:28
RT @StockSignaling: Top Stocks (By Trading Liquidity): $SWHC $EOX $REXX $GPRE $AEGR $NLNK $JAKK $ANGI $BWLD $JNS $ADHD $CSLT $RPRX $DDD $CB…
Stock Signaling
29 Oct 14 16:31:41
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Chayton Falke
29 Oct 14 15:40:06
#Russell2000 #recent #market #exit #4: Covered $ANGI short for a 19.78% #gain in 5 days! #ANGI #forex #trading #stocks
Option TB
29 Oct 14 13:55:57
$ACHN $ANGI $CLDX $HERO $HIMX $IMGN $JASO $PVA $TSL autocharts @ http://t.co/Kx3A207u0a
Stock Signaling
29 Oct 14 13:31:41
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US_proptrader
29 Oct 14 12:34:31
$ACHN $ANGI $CLDX $HERO $HIMX $IMGN $JASO $PVA $TSL autocharts @ http://t.co/hj7PGeTQk3
Chayton Falke
29 Oct 14 12:15:07
Top Twenty Recent Exits #18: Covered $ANGI short for a 19.78% gain in 5 days! #trading #ANGI #forex #stocks
US_proptrader
29 Oct 14 11:36:29
$ANGI $CLD $FOLD $HA $JMEI $KN $MNKD $NCR $WPRT autocharts @ http://t.co/hj7PGeTQk3
Max Vision
29 Oct 14 10:08:10
ProTip: $ANGI will pop on 13 acquisitions rumors over the next 2 months. Short every one...
George Avidon
29 Oct 14 09:06:55
RT @TheTradeXchange: Top Insider Purchases - $ANGI Director 15000 $6.56 $AGCO Director 45000 $45.21 $BTU Director 5000 $10.46 $JONE CFO 36…
Stock Signaling
29 Oct 14 07:01:51
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MicroInsider
29 Oct 14 06:37:19
$ANGI--Nice insider buy came through Monday, 50% short position in the stock. Please read our profile.
Duke Rexx
29 Oct 14 06:27:53
RT @TheTradeXchange: Top Insider Purchases - $ANGI Director 15000 $6.56 $AGCO Director 45000 $45.21 $BTU Director 5000 $10.46 $JONE CFO 36…
TradeXchange
29 Oct 14 06:27:34
Top Insider Purchases - $ANGI Director 15000 $6.56 $AGCO Director 45000 $45.21 $BTU Director 5000 $10.46 $JONE CFO 36578 $12.47
Chayton Falke
29 Oct 14 05:40:02
#Russell2000 #recent #market #exit #4: Covered $ANGI short for a 19.78% #gain in 5 days! #ANGI #forex #trading #stocks
Chayton Falke
29 Oct 14 02:15:02
Top Twenty Recent Exits #18: Covered $ANGI short for a 19.78% gain in 5 days! #trading #ANGI #forex #stocks
Chayton Falke
28 Oct 14 19:40:02
#Russell2000 #recent #market #exit #4: Covered $ANGI short for a 19.78% #gain in 5 days! #ANGI #forex #trading #stocks
Investimonials.com
28 Oct 14 17:03:32
RT @timothysykes: Learn from my free 6-hour Moscow Speech http://t.co/avffgsI2RN EVERYONE on $FB $TWTR $LNKD $ANGI $YY $MEET $MOBI go $STUDY
Profit.ly
28 Oct 14 17:03:16
RT @timothysykes: Learn from my free 6-hour Moscow Speech http://t.co/avffgsI2RN EVERYONE on $FB $TWTR $LNKD $ANGI $YY $MEET $MOBI go $STUDY
Timothy Sykes
28 Oct 14 17:01:43
Learn from my free 6-hour Moscow Speech http://t.co/avffgsI2RN EVERYONE on $FB $TWTR $LNKD $ANGI $YY $MEET $MOBI go $STUDY
Stock Signaling
28 Oct 14 16:31:58
Top Stocks (By Trading Liquidity): $GPRE $AEGR $NLNK $JAKK $ANGI $BWLD $JNS $ADHD $CSLT $RPRX $DDD $CBSO $POWR $AFOP $IBIO #markets #spy
BillionairesPort
28 Oct 14 15:50:52
That is why companies like Angie's List $ANGI, which has never been profitable since it went public dropped from $40 to $6
Hammer D. Lane
28 Oct 14 13:57:10
RT @RaginCajun: Daily Scorecard | Momentum Trading with RaginCajun http://t.co/vbhCGIOvi2 $LNG $MBLY $SCTY $GLUU $ANGI $YOKU $ZU $LOCO $CLNE
				
				
  +Follow October 3, 2013 12:23PM
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