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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
knewsapp
21 Aug 14 10:31:39
"Is there hope of a turnaround at Angie's List?" Short answer? NO! || via @seekingalpha || http://t.co/ljNkiXFS2Z || $ANGI
Financial Updates
21 Aug 14 10:04:36
$ANGI: Why Angie's List Inc Stock Got Crushed http://t.co/DSfW5ybWVS http://t.co/XQ8m1sx5y3
Seeking Alpha
21 Aug 14 09:54:31
Is There Hope Of A Turnaround At Angie's List? http://t.co/C2I5mEuyFG $ANGI
Sean
21 Aug 14 09:44:26
$ANGI Love to see Angie's list get back up to resistance so I can short it again. Eventually it will go bankrupt
Stock Market Monitor
21 Aug 14 09:04:27
$ANGI: ANGIE'S LIST, INC. Financials http://t.co/b8FqP9PlTz http://t.co/BlBLAaMEfr
Green Guy
21 Aug 14 09:01:59
$angi rallying?!? suspect! on watch
Stock Market Monitor
21 Aug 14 08:04:33
$ANGI: Weakness Seen in Angie's List (ANGI): Stock Plunges 19.3% http://t.co/QXwjSfG0eQ http://t.co/kNFYFBctr2
Harvest Exchange
21 Aug 14 07:09:08
@METrades @tdgold8 be sure to check out $ANGI thoughts/perspectives on Harvest as well https://t.co/5pchw91VB9
Harvest Exchange
21 Aug 14 07:08:35
@tbroderi @Nextdoor any thoughts on the recent $ANGI post on Harvest? https://t.co/5pchw91VB9
Harvest Exchange
21 Aug 14 07:08:08
@TrendTrader4u also take a look at recent $ANGI post on Harvest https://t.co/5pchw91VB9
Harvest Exchange
21 Aug 14 07:07:43
@johnwelshtrades @TheArmoTrader @ZorTrades check out more thoughts on $ANGI from top investors https://t.co/5pchw91VB9
Harvest Exchange
20 Aug 14 15:00:31
$ANGI - Operating Relationships. Read more from Ken Copley of Capital Executive https://t.co/jhWHfxNqXg http://t.co/TYiOn88Kpo
John Welsh
20 Aug 14 10:42:04
@TheArmoTrader @ZorTrades Umm no. Research my calls on $GRPN & $ANGI. I know business model failures when I see it.
Stock News Guru
20 Aug 14 09:04:28
$ANGI: Angie's List Shares Tumble On Weak Q2, Outlook; Analysts Slash Estimates http://t.co/Mw1IMY2jv6 http://t.co/w7vzIdcztt
Market Headlines
20 Aug 14 08:04:26
$ANGI: Angie's List Inc. (ANGI) Insider Michael Maurer Buys 12000 Shares http://t.co/BVx7Is4lth http://t.co/4NgXc8UhnO
monestsignalen
20 Aug 14 08:02:03
#aandelen enkele nieuwe lows voor $PLX $SDR $ANGI Check - http://t.co/2iYWAkB523
RC
19 Aug 14 07:29:39
Potential Intraday Runners | Momentum Trading with RaginCajun http://t.co/0kyB1kHIy7 $YGE, $KNDI, $HK, $XCO, $ANGI, $RPTP, $CSUN, $WIX
TrendTrader4u
19 Aug 14 06:49:15
$ANGI pop that I was looking yesterday, it came today, will wait for pullback for safer entry.
TickerChirp
19 Aug 14 05:14:06
Top Tweets for $ANGI on 08/19/2014 http://t.co/cHh84PkzTJ
Tom Broderick
18 Aug 14 10:45:59
Agree w/Greylock re @Nextdoor. So much more powerful. It will upend $ANGI & others. Highest degree of trust built in. We use extensively.
Financial Headlines
18 Aug 14 08:04:28
$ANGI: Angie's List: The End May Be Nigh (ANGI) http://t.co/Pdccvz0PuQ http://t.co/wprAemovtf
Jack Trader
18 Aug 14 08:00:59
$ANGI Why Angie's List Inc Stock Got Crushed http://t.co/Nadglpv2zv
TrendTrader4u
18 Aug 14 07:31:57
$ANGI I said will move slow thats why i dont like low ATR stocks but nothing wrong with trend. Thought i'd see a flush move to upside.
TrendTrader4u
18 Aug 14 07:08:20
$ANGi and $KNDI same setup.
TrendTrader4u
18 Aug 14 07:06:48
$ANGI trade setup, long above 8.01 with stop 7.87. It might not give you much so know that before taking this trade.
Random Stocks Daily
18 Aug 14 05:56:08
Here's ten stocks, chosen absolutely random: $CHE $KEP $VPG $CRESW $CAPE $EBF $ANGI $HPQ $HQY $DFZ. More details at http://t.co/FOOriWTtRk
Biz News Pioneer
17 Aug 14 21:04:15
$ANGI: Angie's List: The End May Be Nigh (ANGI) http://t.co/TwkwIgzzEm http://t.co/AS4wyRCJhB
M. Elmore
17 Aug 14 20:52:23
@tdgold8 That 1st chart I posted of $ANGI is why I'm still watching it. I would like to buy back in on strength. We'll see. Good luck.
M. Elmore
17 Aug 14 17:36:21
Commented on StockTwits: However, I still have $ANGI on my watchlist. http://t.co/YIhmYEwhJL
M. Elmore
17 Aug 14 17:25:34
Commented on StockTwits: I tweeted about $ANGI on the 11th, when the stock was breaking out, but it failed to con... http://t.co/GRIavW0qUN
Colin Macleod
17 Aug 14 15:32:09
August 15 2014 Stocks in a New Downtrend (Aroon) http://t.co/r0DW3jseVP $GLUU $FEYE $FCX $WLAN $OWW $ANGI
FonsieTrader
16 Aug 14 07:05:45
Parabolic Sar Sell Signals 1/2 $ADSK $ANGI $ANR $AVD $BCRX $BKU $CHKR $CLF $COG $CPWR $CTAS $DIOD $EXEL $FAST $JBHT http://t.co/WgCzlABdUL
Financial Headlines
16 Aug 14 02:04:12
$ANGI: Weakness Seen in Angie's List (ANGI): Stock Plunges 19.3% http://t.co/xKXvHX4op2 http://t.co/HwIOz9zusQ
chartguy89
16 Aug 14 01:46:03
ANGI 7.88 Stock Charts $ANGI Angie's List Inc. (NASDAQ) Last Updated: 08/16/2014 03:46:14 ANGI Stock Chart - 1 http://t.co/IDWav7HZN5
Shan Haque
15 Aug 14 19:52:05
Despite the huge drop, $ANGI continued existence is a testament to @yelp sucking for non-restaurant businesses
ShortStockVolume.com
15 Aug 14 14:31:33
Top Shorted Stocks 08/15/14 1. $CHIX 99.71% 2. $ANGI 93.11% 3. $IWF 92.82% 4. $GFI 91.08% 5. $IAU 87.41% 6. $VIV 84.61% 7. $VMBS 84.57%...
ShortStockVolume.com
15 Aug 14 14:31:31
Top Shorted Stocks 08/15/14 1. $CHIX 99.71% 2. $ANGI 93.11% 3. $IWF 92.82%... http://t.co/QQPe6vh2Oo
BNK Invest
15 Aug 14 13:32:53
New 52-Week Low Could Prompt More Insider Buying At Angie's List $ANGI #stocks http://t.co/URCs3UX572
Business Headlines
15 Aug 14 12:04:17
$ANGI: [video] Facebook Shares Surge, Wells Fargo Says Rate Hike may Come Sooner http://t.co/C24Lhi66id http://t.co/H05Mi9GmIY
OccupyWeedStreet
15 Aug 14 11:32:17
So glad I bought $ANGI puts! Hoping Angie's List is delisted by Jan '15
Open Outcrier
15 Aug 14 11:25:59
$ANGI falling out of bed
Daniel M Clark
15 Aug 14 11:25:14
$ANGI. Took the loss. Small loss. #trading
Harry Walkman
15 Aug 14 09:31:19
$ANGI Angie's List Misses Estimates, Issues Soft Guidance http://t.co/L6d4OyT1DD
Daniel M Clark
15 Aug 14 07:54:20
Bought some $ANGI this morning. Tight stop. #trading #stocks
The Panic
15 Aug 14 07:27:01
@8DVolition $YELP right up there with $ANGI, right?
				
				
  +Follow October 3, 2013 12:23PM
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