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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
Peter Bardens
1 Sep 14 05:30:53
$ANGI Does Angie's List Have A Credible Evolution Plan? http://t.co/IkYSzQ5lH6
Lucretia
1 Sep 14 05:30:53
$ANGI Angie's List - Time For Plan B (ANGI) http://t.co/wZ8qzG4k7G
Jack Trader
29 Aug 14 15:00:54
$ANGI Angie's List - Time For Plan B (ANGI) http://t.co/s7D5G3yy31
US Banking News
29 Aug 14 14:27:05
Angie's List major shareholder Tri Ventures, Inc. Purchases 2,688 Shares $ANGI http://t.co/GDA49RTeXn
Biz News Pioneer
29 Aug 14 14:04:42
$ANGI: Weakness Seen in Angie's List (ANGI): Stock Plunges 19.3% http://t.co/Henf2F3GAY http://t.co/stRWbB4Snz
US Banking News
29 Aug 14 13:38:49
Angie's List major shareholder Tri Ventures, Inc. Purchases 2,688 Shares $ANGI http://t.co/xYjmENin80
VisualStock Resource
29 Aug 14 13:12:41
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/E9VUvzOL4Y
john smith
29 Aug 14 13:12:14
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/czTJVFkZhJ
VisualStock Resource
29 Aug 14 13:10:49
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/PxxoP2cS2b
john smith
29 Aug 14 13:10:48
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/KWWudtjmn8
ⓗⓐⓨⓔⓚ
29 Aug 14 06:48:55
52-wwek lows for $GES $NUS and $ANGI
FonsieTrader
29 Aug 14 04:22:52
Moved Lower Bollinger Band $ANGI $BHP $BRLI $CAF $CLF $DIOD $ENI $EPAM $FCH $NYRT $RIO $TLM $TOUR $UEC $VALE $WUBA http://t.co/t0vfzJ5v1g
StockConsultant.com
28 Aug 14 19:27:41
$ANGI breakdown watch, http://t.co/25yeSVtNWY http://t.co/PTyxuqQsuP
Market Updater
28 Aug 14 18:04:37
$ANGI: Why Angie's List (ANGI) Stock Fell to a 52-Week Low Today http://t.co/EjgDgWM6fT http://t.co/2SjQIXf6wt
Roozbeh Pedramzad
28 Aug 14 17:24:55
$ANGI on a TV ad campaign blitz however stock going nowhere but down. Sub $5 soon I think. #bearish
Maverick Analytics
28 Aug 14 16:19:57
@GuyAdami guy u said on fast u were looking for H&S patterns. check out $ANGI clear H&S pattern on weekly. Sub 5 coming soon
FonsieTrader
28 Aug 14 14:13:29
Moved Lower #Bollinger Band $ANGI $BHP $BRLI $CAF $CLF $ENI $EPAM $GES $LII $RIO $TLM $UEC $VALE http://t.co/UfxZJOsZOs via @FonsieTrader
MarketScreener
28 Aug 14 12:46:41
Angie\'s List Inc: The stock is testing its lows. $ANGI http://t.co/6lsRaKm1Lv http://t.co/y0ajl8XZLM
Large Void Bot
28 Aug 14 12:00:19
Popular: $PLUG, $F, $ZOES, $LUB, $MON, $ANGI
Business Headlines
28 Aug 14 09:05:02
$ANGI: [video] Facebook Shares Surge, Wells Fargo Says Rate Hike may Come Sooner http://t.co/C24LhhNX45 http://t.co/UqFXYCTKVN
Thomas Collins
28 Aug 14 08:31:13
$ANGI Is There Hope Of A Turnaround At Angie's List? (ANGI) http://t.co/iog7sUCRAY
John Ablemann
28 Aug 14 06:30:39
$ANGI Is There Hope Of A Turnaround At Angie's List? (ANGI) http://t.co/UtKfaxBYWO
TradingMyway
28 Aug 14 04:29:01
RT @SeekingAlpha: Angie's List - Time For Plan B http://t.co/A2n14W0qJ6 $ANGI
john pagnotta
28 Aug 14 03:46:22
RT @SeekingAlpha: Angie's List - Time For Plan B http://t.co/A2n14W0qJ6 $ANGI
Alysia Sarkisian
28 Aug 14 03:29:24
RT @SeekingAlpha: Angie's List - Time For Plan B http://t.co/A2n14W0qJ6 $ANGI
Seeking Alpha
28 Aug 14 03:22:15
Angie's List - Time For Plan B http://t.co/A2n14W0qJ6 $ANGI
Stock Signaling
27 Aug 14 23:31:34
Technology Sector: Upgrades: $MEI $LVLT $SLH $CHl $SPLK $ANGI $RCI $WIN $SAAS $PLAB $IRF $ARUN $SANM $VZ $INFA http://t.co/Vtx6dLy0Nw #spy
Market News
27 Aug 14 18:04:28
$ANGI: Is There Hope Of A Turnaround At Angie's List? (ANGI) http://t.co/zAdU6WcqDl http://t.co/cLNMjZKDEl
Adam Siepker©
27 Aug 14 07:55:51
$TMH and $ANGI setting up on multi-timeframe moves.
Family Investor
27 Aug 14 05:19:24
Angie's List: Expect A Liquidity Crisis If Nothing Changes http://t.co/ijuIgRqbTF @GKesarios $ANGI
Scott R
26 Aug 14 19:24:46
@stt2318 without looking I bet $ANGI chart looks similar or worse than $SODA both have horrible fundies
Stock News Guru
26 Aug 14 15:04:23
$ANGI: Internet Software and Services Stocks Coverage -- eBay, Angie's List, SINA ... http://t.co/BngSwJ3vsC http://t.co/Gl3mb9gdyt
Drew
26 Aug 14 14:22:54
Get the real $ANGI out of the commercials. She does not add, & no one cares they been doing it for 19 years. What's $GOOG done in that Time?
Stock Market Monitor
26 Aug 14 14:04:45
$ANGI: [audio] Break up or make up? Contractor relationship rules http://t.co/7rz92veDxS http://t.co/yuXDFqU7mU
Drew
26 Aug 14 13:49:30
$ANGI chart not looking too bad no? @RetroWallSt
Drew
26 Aug 14 13:47:32
Gotten my ass kicked on $ZNGA Still own not convinced they're done Quite yet... *Cough* $GRPN $ANGI
Daily Contracts
26 Aug 14 13:43:02
Real-Time feed of company contracts, original agreements and executive updates from Angie's List Inc. $ANGI http://t.co/e0UovqSXQ6
Lucretia
26 Aug 14 13:32:16
$ANGI Is There Hope Of A Turnaround At Angie's List? (ANGI) http://t.co/bYxc0aVTYq
James P Worthy
26 Aug 14 13:32:15
$ANGI Does Angie's List Have A Credible Evolution Plan? http://t.co/w8i5guWBgx
Bulls vs Bears
26 Aug 14 12:04:47
$ANGI: Angie's List Is Dying For The Same Reason Facebook Is Winning http://t.co/ELoc5OxdAa http://t.co/2XWSCGHJcr
Clair Voight
26 Aug 14 12:01:49
$ANGI Is There Hope Of A Turnaround At Angie's List? (ANGI) http://t.co/qUSsvwCLp7
Mark Holder
26 Aug 14 11:54:50
Commented on: "Does Angie's List Have A Credible Evolution Plan?" http://t.co/nSVLKKq5ui $ANGI $YELP
Samuel Brown
26 Aug 14 10:00:36
$ANGI Does Angie's List Have A Credible Evolution Plan? http://t.co/MmrErviKSc
Clair Voight
26 Aug 14 09:30:48
$ANGI Does Angie's List Have A Credible Evolution Plan? http://t.co/hlbONPh0k6
Seeking Alpha
26 Aug 14 08:35:56
Angie's List: Expect A Liquidity Crisis If Nothing Changes http://t.co/pY7YjF4ffs $ANGI
Business News Now
26 Aug 14 05:04:38
$ANGI: Why Angie's List Inc Stock Got Crushed http://t.co/wA9QP3nUND http://t.co/gfgv5246GL
WKRB News
26 Aug 14 05:03:00
Angie's List Upgraded by Zacks to “Neutral” $ANGI http://t.co/mTiuZqGWbL
Seeking Alpha
26 Aug 14 04:27:43
Does Angie's List Have A Credible Evolution Plan? http://t.co/eELdSjtFgL $YELP $ANGI
Stock Signaling
25 Aug 14 23:31:13
Technology Sector: Upgrades: $SPLK $ANGI $RCI $WIN $SAAS $PLAB $ECOM $IRF $ARUN $SANM $VZ $INFA $ffiv $VMW $BRCM http://t.co/Vtx6dLy0Nw #spy
Daily Contracts
25 Aug 14 08:22:01
Real-Time feed of company contracts, original agreements and executive updates from Angie's List Inc. $ANGI http://t.co/e0UovqSXQ6
				
				
  +Follow October 3, 2013 12:23PM
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