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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
The Deal
3 Aug 15 07:09:55
A sale may be best option for activist-pressured Angie's List http://t.co/00v9XhqNZb $ANGI http://t.co/aipoTp60Yn
Insider Monkey
3 Aug 15 06:58:49
RT @insidermonkey_n: Insiders Are Buying Shares Of $ANGI, $RELL, And $AMKR http://t.co/41k7u3EvQ5
binaryoptionsocial
3 Aug 15 06:49:40
GOOGL Google Inc. - Class A Short Sales http://t.co/slPLLEr3E2 $GOOGL $HIMX $ANGI $JPM #GOOGL #finance #invest http://t.co/IFXe4VLiF2
binaryoptionsocial
3 Aug 15 06:49:37
UA Under Armour, Inc. Financials http://t.co/e5IPTZuQnq $UA $F $AMGN $ANGI #UA #share #nasdaq http://t.co/Csk7miIhta
Stock Forums
3 Aug 15 06:48:07
UA Under Armour, Inc. Financials http://t.co/w5L8dLmYs3 $UA $F $AMGN $ANGI #UA #share #nasdaq
Jake13
3 Aug 15 06:48:04
USO United States Oil Fund, LP Day Low http://t.co/5Je2TFqLxZ $USO $ANGI $HACK $GMCR #USO #invest #tradeideas
clayton
3 Aug 15 06:47:40
ULTA Ulta Salon Cosmetics & Fragrance Inc. Summary http://t.co/fZcjAtuI5B $ULTA $PBR $ANGI $SPXU #ULTA #invest #tradeideas
Stock Forums
3 Aug 15 06:47:10
TVIX VelocityShares Daily 2x VIX Short Term ETN Shares http://t.co/Us2jmINsjd $TVIX $OWOO $ANGI $HACK #TVIX #nasdaq #finance
leahanne
3 Aug 15 06:46:08
SHLD Sears Holdings Corp. Exchange http://t.co/AsCM9BfWhl $SHLD $PFE $XLU $ANGI #SHLD #invest #finance
Stock_Tracker
3 Aug 15 06:45:48
SPXU ProShares UltraPro Short S&P 500 Change http://t.co/MPZT0U55bI $SPXU $EA $SH $ANGI #SPXU #finance #finance
lookn4wins
3 Aug 15 06:45:38
SH ProShares Short S&P 500 Fund News http://t.co/QmG2yw0xJg $SH $ANGI $GLD $AMPE #SH #stocks #pennystocks
Insider Monkey
3 Aug 15 06:45:10
Insiders Are Buying Shares Of $ANGI, $RELL, And $AMKR http://t.co/5RHU1OSG7x
Insider Monkey News
3 Aug 15 06:45:10
Insiders Are Buying Shares Of $ANGI, $RELL, And $AMKR http://t.co/41k7u3EvQ5
danrocks
3 Aug 15 06:44:15
PBR Petroleo Brasileiro (Petrobras) Chart http://t.co/y4xKVLui4S $PBR $ANGI $ANTH $ARRY #PBR #invest #share
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3 Aug 15 06:44:02
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DennyT
3 Aug 15 06:41:59
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Investors Hangout
3 Aug 15 06:41:40
MDIV First Trust Multi-Asset Diversified Income Index Fund Market Cap http://t.co/s9T67yMmmX $MDIV $ANGI $SPXL $HACK #MDIV…
PolgarStocks
3 Aug 15 06:41:39
MYEC MyECheck, Inc. Filings http://t.co/GgYPrMPlBl $MYEC $CYBR $JDST $ANGI #MYEC #stockmarket #stocks
PolgarStocks
3 Aug 15 06:41:38
MCD McDonalds Corp. Investor Opinions http://t.co/EOqoxixrk1 $MCD $FINL $SHLD $ANGI #MCD #stocks #finance
clayton
3 Aug 15 06:41:37
MU Micron Technology, Inc. Investor Opinions http://t.co/iQbyF2T36h $MU $BABA $ANGI $MPC #MU #finance #stock
danrocks
3 Aug 15 06:40:07
KING King Digital Entertainment Plc Change http://t.co/DenrHmGjRx $KING $QLD $ANGI $GREK #KING #pennystocks #stock
leahanne
3 Aug 15 06:39:41
HIMX Himax Technologies Inc. Tick http://t.co/mEDsxOPljR $HIMX $FB $JNUG $ANGI #HIMX #nasdaq #share
PolgarStocks
3 Aug 15 06:39:36
HD Home Depot, Inc. Open http://t.co/lcMooyxdOS $HD $MPC $SLV $ANGI #HD #invest #pennystocks
IH NASDAQ OMX
3 Aug 15 06:38:38
GOOGL Google Inc. - Class A Short Sales http://t.co/qj9kSUN8ME $GOOGL $HIMX $ANGI $JPM #GOOGL #finance #invest
Investors Hangout
3 Aug 15 06:38:13
GMCR Keurig Green Mountain, Inc. Exchange http://t.co/gdLl7pMPRZ $GMCR $ANGI $AAPL $XLY #GMCR #nasdaq #pennystocks
Stock Forums
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F Ford Motor Co. News http://t.co/Yi1kPHKAto $F $DUST $XLV $ANGI #F #pennystocks #stock
clayton
3 Aug 15 06:35:44
DIA SPDR DJ Industrial Average ETF Trust Message Board Posts http://t.co/Ypu7yVcArz $DIA $GDXJ $LVS $ANGI #DIA #finance #nasdaq
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3 Aug 15 06:35:21
CVX Chevron Corp. E.P.S. http://t.co/P1G8rRmfSp $CVX $ANTH $CRWG $ANGI #CVX #stockmarket #stock
Rosner Stocks
3 Aug 15 06:35:15
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lookn4wins
3 Aug 15 06:34:03
C Citigroup, Inc. Change http://t.co/5qJT5E8WYi $C $ANGI $LUV $XLB #C #nasdaq #investing
danrocks
3 Aug 15 06:33:36
BRWC Boreal Water Collection Inc. Tick http://t.co/UbfEyX4U5I $BRWC $ANGI $XLP $MDY #BRWC #share #stocks
Investors Hangout
3 Aug 15 06:33:27
BRCM Broadcom Corp. Day Low http://t.co/8f8MqQGuGn $BRCM $LVS $ANGI $FCX #BRCM #stock #stocks
Somanath
3 Aug 15 06:32:54
1LuckyJimmy : ANGI Angie's List Inc. Quotes http://t.co/rB1qbemOZo $ANGI $LUV $DRYS $GO… http://t.co/5rgDZXgSvL) http://t.co/FuKNAX5bzY
Somanath
3 Aug 15 06:32:48
clayton_dd : ANGI Angie's List Inc. % Change http://t.co/72yS8Ff3F6 $ANGI $NAT $GDX $UU… http://t.co/cgB0pemEpa) http://t.co/12neLJWTVN
Emylers
3 Aug 15 06:32:40
ANGI Angie's List Inc. Last Price http://t.co/yOQHq3NYrG $ANGI $TLT $GS $SUNE #ANGI #finance #invest
jim50
3 Aug 15 06:32:39
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3 Aug 15 06:32:37
BABA Alibaba Group Holding Ltd. Summary http://t.co/nIDCKS9rE7 $BABA $ABGB $ANGI $CSCO #BABA #stocks #nasdaq
Stock Forums
3 Aug 15 06:32:37
ANGI Angie's List Inc. Ex-Div Date http://t.co/RDN8oVIgxw $ANGI $HYG $TSLA $PG #ANGI #nasdaq #stocks
Rosner Stocks
3 Aug 15 06:32:19
ANGI Angie's List Inc. Company Info http://t.co/otFqlzvn56 $ANGI $HD $XLB $AMBA #ANGI #pennystocks #stocks
lookn4wins
3 Aug 15 06:32:15
ANGI Angie's List Inc. Financials http://t.co/bFTdu9ezj6 $ANGI $JDST $NUGT $SCO #ANGI #finance #stock
Lucky Jimmy
3 Aug 15 06:32:13
ANGI Angie's List Inc. Quotes http://t.co/A9CCcdlfl9 $ANGI $LUV $DRYS $GOOG #ANGI #stockmarket #pennystocks
clayton
3 Aug 15 06:32:08
ANGI Angie's List Inc. % Change http://t.co/2t1r3NoFh3 $ANGI $NAT $GDX $UUP #ANGI #pennystocks #stockmarket
Mark Trader
3 Aug 15 06:24:59
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IH News Desk
3 Aug 15 06:14:16
$EXPE Opinions Updated Monday, August 3, 2015 08:10:38 AM $FOLD $ANGI $AMZN $FEYE http://t.co/iqltTuQEqs
PolgarStocks
3 Aug 15 05:26:10
$SLV Reviews Updated Monday, August 3, 2015 08:06:54 AM $UA $MRK $ERX $ANGI http://t.co/g89GkSrktt
IH News Desk
3 Aug 15 05:14:13
$ANGI Stock Forum Updated Monday, August 3, 2015 07:10:40 AM $DIS $USO $MCD $BIIB http://t.co/xBa7qqUgr9
PolgarStocks
3 Aug 15 04:24:35
$GPRO Recent News Updated Monday, August 3, 2015 07:06:54 AM $ANGI $OCR $GASL $GLNG http://t.co/PE0ZtRNkzZ
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3 Aug 15 03:23:10
$XLB Filings Updated $DIS $ICPT $ANGI $RDUS http://t.co/II3MWTqqhr
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3 Aug 15 02:21:09
$ACHC Percent Change Updated Monday, August 3, 2015 05:06:54 AM $EBAY $GRO $ANGI $OPK http://t.co/pN1z1ioQdW
				
				
  +Follow October 3, 2013 12:23PM
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