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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
Seeking Alpha - All
22 Nov 14 06:40:49
Has Angie's List Bottomed Out? http://t.co/bZXQEuqfDw $ANGI
Ariel Silahian
21 Nov 14 13:07:50
Algorithmic trading: OPEN Nov/21 SELL: $PKD $ANGI $RSH $EJ $RYN $BAS $SID $NLNK
Mark Weaver
21 Nov 14 11:23:44
@jimcramer $YELP has same problem as $ANGI -most reviews are meaningless, they are done by family or friends. Need 1000's to be trustworthy
Seeking Alpha
21 Nov 14 07:23:53
Long-time $ANGI bear sees potential bottom; w churn near 25% annually, might be #fallingknife: http://t.co/bFhIoLBv2l http://t.co/dyph98UoLl
Jeffrey Blake
21 Nov 14 05:02:08
$ANGI Does Angie's List Inc. Offer Any Value? http://t.co/92EluaHIxw
Jack Trader
21 Nov 14 05:02:08
$ANGI Why Angie's List Keeps Getting Mixed Reviews http://t.co/C0PeoXRLTA
Samuel Brown
20 Nov 14 09:32:49
$ANGI Why Angie's List Keeps Getting Mixed Reviews http://t.co/1uvzLk6Axc
Daily Contracts
20 Nov 14 09:14:13
Real-Time feed of company contracts, original agreements and executive updates from Angie's List Inc. $ANGI http://t.co/sIcgqlXphk
US_proptrader
20 Nov 14 09:03:29
$ACI $AFFX $ANGI $BBEP $GERN $JASO $MACK $XOMA $ZIOP autocharts @ http://t.co/rTnYb8yj59
US_proptrader
20 Nov 14 08:12:28
$ACHN $AMCC $ANGI $CANF $CLDX $HZNP $NLNK $SNSS $XOMA autocharts @ http://t.co/rTnYb8yj59
Investors Hangout
20 Nov 14 08:05:18
Emylers: ANGI 5.79 Angie's List Inc $ANGI Hit a 52 week http://t.co/OJVBXgfFOl
Investors Hangout
20 Nov 14 08:05:18
Emylers: ANGI 5.79 Angie's List Inc $ANGI Hit a 52 week http://t.co/CFrS5YnLwN
Investors Hangout
20 Nov 14 08:05:18
Emylers: ANGI 5.79 Angie's List Inc $ANGI Hit a 52 week http://t.co/DfF279jGK6
Investors Hangout
20 Nov 14 08:05:17
Emylers: ANGI 5.79 Angie's List Inc $ANGI Hit a 52 week http://t.co/4T3BmYGAGv
Emylers
20 Nov 14 08:04:34
ANGI 5.79 Angie's List Inc $ANGI Hit a 52 week low of 5.55 Closing the day 10:45 at 5.79 +0.13 +2.30% With a d http://t.co/tn6WzUUOga
Emylers
20 Nov 14 08:04:10
$ANGI ANGI 5.79 Angie's List Inc $ANGI Hit a 52 week low of 5.55 Closing the day 10:45 at 5.79 +0.13 +2.30% With a d http://t.co/G4nE4yW1Az
docking
20 Nov 14 07:50:38
$ANGI may have found a bottom, now trading at 5.80ask
The 45th
20 Nov 14 07:44:55
RT @IBJnews: Angie's List misses profit, revenue expectations. Shares tumble. http://t.co/mzgm2MH8Z1 #Indy $ANGI
Fa$tlane $tocks
19 Nov 14 20:51:52
Enable Midstream Partners To Join The Alerian Natural Gas MLP Index | 7:35 AM | [PR Newswire] - DALL $ANGI http://t.co/oc9FMrr1pN
MASTERTRADER
19 Nov 14 12:27:11
ready to buy 100k shares of POS $ANGI. Lets see who's gonna make da MONY afterall lol. shorts will be crying soon in that POS.
MASTERTRADER
19 Nov 14 12:17:12
buying more $ANGI down here
MarketScreener
19 Nov 14 11:56:09
Angie\'s List Inc: The stock is testing its lows. $ANGI http://t.co/6lsRaKDCTz http://t.co/IB1aChKVzG
US_proptrader
19 Nov 14 09:57:29
$ANGI $ARIA $CANF $FWM $GERN $PPP $REXX $WLT autocharts @ http://t.co/rTnYb8yj59
US_proptrader
19 Nov 14 09:41:26
$ANGI $ANV $BBRY $CYTR $IAG $RIC $SRPT $WTI autocharts @ http://t.co/rTnYb8yj59
Emylers
19 Nov 14 08:03:11
ANGI 5.79 Angie's List Inc $ANGI Hit a 52 week low of 5.66 Closing the day 10:45 at 5.79 +0.06 +1.05% With a d http://t.co/lSnwS21dSg
Emylers
19 Nov 14 08:02:47
$ANGI ANGI 5.79 Angie's List Inc $ANGI Hit a 52 week low of 5.66 Closing the day 10:45 at 5.79 +0.06 +1.05% With a d http://t.co/gxYTmklXBf
MASTERTRADER
19 Nov 14 06:45:15
$ANGI $5.79
MASTERTRADER
19 Nov 14 06:41:01
bought $ANGI $5.70
Large Void Bot
19 Nov 14 06:32:33
New 52wk Lows: $ANGI $CZZ $SM $URBN
Stocks News&Markets
19 Nov 14 05:46:48
$ANGI - Enable Midstream Partners To Join The Alerian Natural Gas MLP Index http://t.co/OQChsokv4P
john smith
19 Nov 14 05:46:30
$ANGI - Enable Midstream Partners To Join The Alerian Natural Gas MLP Index http://t.co/xIN0UEqhi8
NASDAQ
19 Nov 14 05:46:18
$ANGI - Enable Midstream Partners To Join The Alerian Natural Gas MLP Index http://t.co/S9LBLRJTpt
monestsignalen
19 Nov 14 03:03:02
Nieuwe lows voor vandaag #aandelen http://t.co/TLLpkQsVC5 $CBSO $ADHD $ANGI
US Banking News
18 Nov 14 19:50:05
Insider Buying: Tri Ventures, Inc. Acquires 3,400 Shares of Angie's List Stock $ANGI http://t.co/lAzr7beToI
Steve Morton
18 Nov 14 19:17:42
RT @ForTraders: Angie List : Named One of the Fastest-Growing Companies in North America on Deloitte's 2014 Technology Fast... http://t.co/…
4-traders.com
18 Nov 14 19:15:02
Angie List : Named One of the Fastest-Growing Companies in North America on Deloitte's 2014 Technology Fast... http://t.co/Yh9FNJWn3o $ANGI
4-traders.com
18 Nov 14 19:15:02
Angie List : to Present at RBC Capital Markets' Technology, Internet, Media & Telecommunications Conference http://t.co/4QdE3y2gGB $ANGI
Stocks News&Markets
18 Nov 14 14:23:55
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/hqDZSh0DVD
Stocks News&Markets
18 Nov 14 14:23:54
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/eMSorFTLns
Stocks News&Markets
18 Nov 14 14:23:53
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/UoizhGoMZW
john smith
18 Nov 14 14:21:28
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/t7HFmJYIjf
john smith
18 Nov 14 14:21:27
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/27w4wWjdUF
john smith
18 Nov 14 14:21:26
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/FmZVI5gfr2
Augie Ray
18 Nov 14 14:04:20
Social Media Stocks YTD: -15%; NASDAQ +13%. Up: $FB $HUBS $LNKD Down: $TWTR $MKTO $YELP $AWAY $BV $ZNGA $GRPN $JIVE $ANGI
Insider Filings
18 Nov 14 13:44:18
$ANGI: Kapner Steven M. bought a net $20,777 in Angie's List, Inc.. http://t.co/rp51xl5XSy
Insider Filings
18 Nov 14 13:43:07
$ANGI: Chuang John H. bought a net $20,777 in Angie's List, Inc.. http://t.co/rp51xl5XSy
Insider Filings
18 Nov 14 13:42:09
$ANGI: TRI Ventures, Inc., Chuang John H., Kapner... bought a net $20,777 in Angie's List, Inc.. http://t.co/rp51xl5XSy
4-traders.com
18 Nov 14 12:20:02
Angie List : Scores Gold in 2014 Content Marketing Institute Awards"Finding Normal after Disaster" and Expe... http://t.co/RanfBDLTWf $ANGI
Tweed
18 Nov 14 11:18:17
@JohnConaway $EBR, $ANGI, & $OXGN were duds today, watching for possible later week action. $SC & $UNG were nice "off the lows".
Uncle Omer
18 Nov 14 09:57:39
@jeffereytweets I don't short often but when I do, I short walkingdead $BILLION companies like $JCP -or $ANGI in 2012 http://t.co/2NVZdzFnm4
				
				
  +Follow October 3, 2013 12:23PM
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