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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
OptMapp
26 Nov 14 16:02:39
“@Forbes: Yesterday, Amazon debuted Amazon Local Services: http://t.co/FdJIyaMv2m” $amzn should just buy $angi
Harry Walkman
26 Nov 14 09:03:00
$ANGI Wunderlich Likes Angie's List's Latest Mobile App http://t.co/Da9Y8znawG
Max Maxwell
26 Nov 14 04:24:19
$AMZN not just a seller of products wants to connect users with handymen through Local Services expansion $ANGI http://t.co/EdpMd42Rht
Cecilia Graziosi
25 Nov 14 16:25:28
After Hour Gainers / Losers $PHMD $VEEV $BLOX $CPE $ANGI $VNET $IQNT $UCI $AVAV http://t.co/C3sGpxY7ag
Darspal S Mann
25 Nov 14 15:55:35
Shake up for Web 2.0 is near? Amazon's New Local Handyman Service Looks Super Useful http://t.co/zuzUephZAf $YELP $GRPN $ANGI
ARK Indu Innovation
25 Nov 14 10:57:01
$AMZN is going up against $ANGI and $HD. http://t.co/0xYsqfoLEc
clayton
25 Nov 14 10:31:45
ANGI 6.13 Angie's List Inc $ANGI added to my watch list. Right now with ANGI I am watching the last price 6.13 http://t.co/J5q2988Vf8
clayton
25 Nov 14 10:31:22
$ANGI ANGI 6.13 Angie's List Inc $ANGI stock added to my watch list. Right now with ANGI I am watching the last pric http://t.co/wrZnuSCagr
The Fly
25 Nov 14 10:16:37
Angie's List retreats after Amazon reportedly launches local services site $ANGI $AMZN $EBAY $GRPN $YELP $FB $... http://t.co/EGq6yMAKvK
Mike from Bear&Bull
25 Nov 14 09:00:11
$ANGI was already dead in the water, but $AMZN just put the nail in the coffin and dug it a 6 foot deep hole http://t.co/5ipwUAkBOT
MarketCurrents
25 Nov 14 08:38:21
Angie's List -5.5%; Amazon begins promoting local services http://t.co/WkQrmyZ4YE $ANGI
Tracey Ryniec
25 Nov 14 08:13:26
RT @LaMonicaBuzz: When will those clouds all disappear? $AMZN may launch service to help people find handymen. Not good for Angie or her li…
Common Man Investor
25 Nov 14 08:06:30
RT @LaMonicaBuzz: When will those clouds all disappear? $AMZN may launch service to help people find handymen. Not good for Angie or her li…
Paul R. La Monica
25 Nov 14 07:55:27
When will those clouds all disappear? $AMZN may launch service to help people find handymen. Not good for Angie or her list. $ANGI down 5%.
Large Void Bot
25 Nov 14 06:41:20
New 52wk Lows: $ANGI $SALT
Traderinvestor
25 Nov 14 05:42:16
On watchlist $TRUE $POWR $INVE $SALE $ANGI $ECYT $CLUB $HALO $ASNA $VOLC $KATE
Motley Fool Review
25 Nov 14 05:27:03
Will they buy Angi's List? "Amazon Wants To Help You Find A Plumber" - http://t.co/lSiwZHPiPG $AMZN $ANGI
Chris
25 Nov 14 04:43:30
RT @danielhsqr: Cc $ANGI “@waltmossberg: $AMZN begins promoting handyman & install services in 9 states http://t.co/yIY1RChLW7 http://t.co/…
Leigh Drogen
25 Nov 14 04:29:07
RT @danielhsqr: Cc $ANGI “@waltmossberg: $AMZN begins promoting handyman & install services in 9 states http://t.co/yIY1RChLW7 http://t.co/…
FonsieTrader
25 Nov 14 04:21:05
Parabolic Sar Buy Signals 1/4 $ABC $ACN $ACXM $ADTN $ALSN $AMD $ANGI $ARRY $BKLN $BMRN $BSMX $CINF $CMS $CUBE $CVS http://t.co/ho8xbfbwkj
Chairman Zatz
25 Nov 14 04:20:32
RT @danielhsqr: Cc $ANGI “@waltmossberg: $AMZN begins promoting handyman & install services in 9 states http://t.co/yIY1RChLW7 http://t.co/…
Daniel Ernst
25 Nov 14 04:17:01
Cc $ANGI “@waltmossberg: $AMZN begins promoting handyman & install services in 9 states http://t.co/yIY1RChLW7 http://t.co/BeBEMacGil”
Retail's Edge
24 Nov 14 18:36:53
Bye bye, $ANGI - Amazon Wants To Help You Find A Plumber. http://t.co/GJKTOf6Nq5
Nilay Shah
24 Nov 14 17:46:03
Amazon wants to help put you in touch with handymen $amzn $angi $yelp http://t.co/A2ChU64oS9
Stockmarketsvane
24 Nov 14 16:42:33
Swing Sell Picks: $AEGR, $ANGI, $GGB, $PRW.CA http://t.co/85LMWuQBAL
Tech Alerts
24 Nov 14 15:30:01
Has Angie's List Bottomed Out? http://t.co/vEm8DPfjYW $ANGI
Perfor Mance
24 Nov 14 11:23:44
Option Millionaires: nlightn: $ANGI,...Angie's List +4.3%; Wunderlich talks up new mobile app http://t.co/BOIdsPf610
MASTERTRADER
24 Nov 14 11:13:34
out $ANGI ^.05 -$6.10 from $5.63 cost bought last thursday.
MarketCurrents
24 Nov 14 10:56:42
Angie's List +4.3%; Wunderlich talks up new mobile app http://t.co/v04sW4D2FP $ANGI
Phillip Ressler
24 Nov 14 10:45:51
RT @Benzinga: Wunderlich Likes Angie's List's Latest Mobile App $ANGI $GOOGL $YELP http://t.co/zz2IdDRAxL Shares of Angie's List are up 4%
Daily Contracts
24 Nov 14 10:38:01
Real-Time feed of company contracts, original agreements and executive updates from Angie's List Inc. $ANGI http://t.co/sIcgqlXphk
Quantpost Technology
24 Nov 14 10:23:58
$GOOGL $YELP News: "Wunderlich Likes Angie's List's Latest Mobile App $ANGI …" http://t.co/z7EDzBz8Kt Board view: https://t.co/0Q8IpZX6D7
Benzinga.com
24 Nov 14 10:23:57
Wunderlich Likes Angie's List's Latest Mobile App $ANGI $GOOGL $YELP http://t.co/zz2IdDRAxL Shares of Angie's List are up 4%
Large Void Bot
24 Nov 14 06:32:14
New 52wk Lows: $ANGI
Daily Contracts
24 Nov 14 05:03:01
Real-Time feed of company contracts, original agreements and executive updates from Angie's List Inc. $ANGI http://t.co/sIcgqlXphk
TickerChirp
23 Nov 14 07:38:03
Most Popular Tweets Concerning $ANGI (Angies List Inc symbol ANGI) on 11/23/2014 http://t.co/aOGnEqttwj
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
				
				
  +Follow October 3, 2013 12:23PM
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