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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
Capital Market Labs
23 May 15 19:50:45
$ANGI Revenue is Rising. #CML_ANGI #CML_Revenue http://t.co/SZxkv0DHAX http://t.co/p4mHvlcYq2
Capital Market Labs
23 May 15 03:18:10
$LQDT vs. $PERI vs. $FUEL vs. $ANGI Compared Across 9 Critical Measures http://t.co/uXCaA9J0xx http://t.co/XYN6AvXk6X
dailystockplays.com
22 May 15 14:56:18
Ichimoku Red http://t.co/9qKKuKKnbO $GGP $MPC $EMN $PBF $HAR $ANGI $RHI $CDK $PTX $IRWD $OFG $TCON $DAKP $PRGS $GSVC $TOWR $FSB $UGA
Capital Market Labs
22 May 15 02:36:49
$LQDT vs. $PERI vs. $FUEL vs. $ANGI Compared Across 9 Critical Measures http://t.co/69g764S6Ah http://t.co/ZdIfzhpSGL
Irma Doucet
21 May 15 15:06:54
$ANGI Tri Ventures - Inc., Angie's List Inc (NASDAQ:ANGI)'s insider Bought 3312 Shares http://t.co/mp1bahgknQ
Gus Alcantara
21 May 15 15:02:34
RT @jvpmedia: Meet http://t.co/JbSZ9oDI2F: The Startup Disrupting The Home Improvement Space $ANGI $HD $LOW http://t.co/VVsXBrCZfy via @be…
dailystockplays.com
21 May 15 14:44:24
Ichimoku Green http://t.co/hy0kb6dszb $USO $OAS $GGP $HSBC $OIL $SSE $CCJ $EXXI $SYMC $REXX $FTK $BCEI $EMN $ANGI $HOS $GDOT $PCAR $SNTA
Jessica V. Piha
21 May 15 11:59:47
Meet http://t.co/JbSZ9oDI2F: The Startup Disrupting The Home Improvement Space $ANGI $HD $LOW http://t.co/VVsXBrCZfy via @benzinga
Harry Walkman
21 May 15 11:36:30
$ANGI Why Angie's List Inc Stock Popped Today http://t.co/Ti64wlo8JP
Daily Contracts
21 May 15 06:19:07
Real-Time feed of company contracts, original agreements and executive updates from $ANGI http://t.co/sB18NcfQ6n
Capital Market Labs
21 May 15 03:53:01
$LQDT vs. $MM vs. $ANGI vs. $FUEL Compared Across 9 Critical Measures http://t.co/OX62ZVvME9 http://t.co/RQdte4V4bl
Capital Market Labs
21 May 15 01:10:22
$LQDT vs. $ANGI vs. $PERI vs. $FUEL Compared Across 9 Critical Measures http://t.co/T83WCDNIAB http://t.co/LXuQzItd61
Jack Trader
20 May 15 15:35:34
$ANGI Why Angie's List Inc Stock Popped Today http://t.co/dCmiMv12VR
Maggie Musgrave
20 May 15 13:14:13
RT @IBJnews: ICYMI: Changes afoot at Angie’s List go way beyond exit of CEO, @IBJandrews writes this week. http://t.co/pC1v2iGMn9 $ANGI
IBJ News
20 May 15 12:42:40
ICYMI: Changes afoot at Angie’s List go way beyond exit of CEO, @IBJandrews writes this week. http://t.co/pC1v2iGMn9 $ANGI
theNose
20 May 15 06:27:47
$nq, $jcp, $zu, $angi, $cs on watch for upside breakout
Capital Market Labs
19 May 15 19:41:16
$ANGI Revenue is Increasing. #CML_ANGI #CML_Revenue http://t.co/7xGQW27tmJ http://t.co/3PomWySRW2
Capital Market Labs
19 May 15 12:39:25
$LQDT vs. $FUEL vs. $MM vs. $ANGI Compared Across 9 Critical Measures http://t.co/vOLwkVspee http://t.co/yxAxHPvh6a
Daily Contracts
19 May 15 09:34:02
Real-Time feed of company contracts, original agreements and executive updates from $ANGI http://t.co/sB18NcfQ6n
Stocks I Buy
19 May 15 07:07:54
$LEI buying now. Great value Has a huge oil asset. A new deal will come. #stocks #Pennystocks #oil $PPCH $VYEY $HEMP $THCZ $FAZ $S $ANGI $F
Daily Contracts
19 May 15 06:04:01
Real-Time feed of company contracts, original agreements and executive updates from $ANGI http://t.co/sB18NcfQ6n
StockNewsWires
19 May 15 02:49:02
$ANGI: Tri Ventures - Inc., Angie's List Inc (NASDAQ:ANGI)'s insider Bought ...: http://t.co/IrsEdnRvhz
BreakingStocksNews
19 May 15 00:13:04
$ANGI: Large Inflow of Money Witnessed in Angies List, Inc.: http://t.co/pSd1Sq5s1c
Investment Analyst
18 May 15 21:37:17
Nice to keep a portion of portfolio in $angi
ProVesting
18 May 15 20:38:03
$ANGI $APB: New Insider Buying for May, 18th (AMA, ANGI, APB, BTN, CARO ...: http://t.co/quo3gLGti3
US Banking News
18 May 15 19:40:20
Angie's List Director Buys $20,700.00 in Stock $ANGI http://t.co/opRF6hBk6L
dailystockplays.com
18 May 15 15:53:10
Ichimoku Red http://t.co/r2osqapVMn $EXTR $ANGI $ATOS $WIT $LPSN $OCUL $GLRE $CERU $STML $CERE $NRO $FCSC $TTGT $TSLX $PHMD $CUBA $PMFG
Justin Jeong
18 May 15 13:15:05
I don't see anyone making a bid for $yelp - called it two weekends ago with comparison to $angi
Stocks News&Markets
18 May 15 13:13:12
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/DChFvONINf
Stocks News&Markets
18 May 15 13:13:12
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/agTfzosbD8
Stocks News&Markets
18 May 15 13:13:11
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/LxHUvRJa9Z
john smith
18 May 15 13:13:08
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/1bZQJlZYKR
john smith
18 May 15 13:13:07
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/p6az5w1ivr
john smith
18 May 15 13:13:06
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/HNHpzJRNF4
Insider Filings
18 May 15 13:12:47
$ANGI: TRI Ventures, Inc., TRI Investments, LLC bought a net $20,704 in Angie's List, Inc.. http://t.co/U9wiAbFTbs
Insider Filings
18 May 15 13:12:27
$ANGI: Kapner Steven M. bought a net $20,704 in Angie's List, Inc.. http://t.co/U9wiAbFTbs
Dan Chapman
18 May 15 05:16:07
$ACTG $ANGI $BBD $S $THRX stocks moving higher off support areas with good trade quality http://t.co/cj6yA03dmd http://t.co/n0FaEF8elZ
theNose
18 May 15 04:37:34
staying long $zu, $jcp, $angi
Traderinvestor
18 May 15 04:25:39
Watch list 5/18/15 $EXEL $BABA $RENT $G $WWWW $NATI $AMX $HALO $CROX $FDX $IG $NLY $ANGI $SSE $GIMO $TRUE
Kooler Aid
17 May 15 17:49:45
$ANGI room roughly for a double from here #SaxyWeeklyChart
Capital Market Labs
17 May 15 14:07:27
$ANGI Revenue is Increasing. #CML_ANGI #CML_Revenue http://t.co/SZxkv0DHAX http://t.co/KJ3C5dWAJk
Capital Market Labs
17 May 15 13:19:53
$LQDT vs. $ANGI vs. $FUEL Compared Across 9 Critical Measures http://t.co/Tfe9F75A4n http://t.co/aKSOblEmc5
HokieZ28
17 May 15 09:20:48
$ANGI potential squeeze candidate, 25% short interest http://t.co/ss9FIm3qbX
John Ablemann
15 May 15 15:32:58
$ANGI AMZN's Next Victim: Angie's List (ANGI) http://t.co/A9wvKt6jQI
Jeffrey Blake
15 May 15 11:39:01
$ANGI AMZN's Next Victim: Angie's List (ANGI) http://t.co/EEG6TjtfXu
Lucretia
15 May 15 11:38:47
$ANGI Why Angie's List Inc Stock Popped Today http://t.co/QSMLGtfzaG
Ivan Bunin
15 May 15 10:47:24
$ANGI This was perfect from yesterday http://t.co/ns8TYBo0Gi
Kristin
15 May 15 04:12:30
$YELP my $50P is up & expiring today, this should have been $30 now. No one is interested other than loser $ANGI.
				
				
  +Follow October 3, 2013 12:23PM
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