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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
SprinkleBit
21 Oct 14 15:01:30
#Earnings before the market opens tomorrow: $ABT, $APH, $ANGI, $BEAV, $BIIB, $BA, $BSX, $DOW, $EMC, $EVR, $FNB, $GD, $GNTX, $HCBK, $IPG
MarketCurrents
21 Oct 14 14:30:04
Notable earnings before Wednesday’s open http://t.co/Vsj9NdCnul $ABB $ABT $ANGI $APH
Ed Lippman
21 Oct 14 14:17:19
Angie's List - Time For Plan B $ANGI http://t.co/7kua0eV1IK
Ben Silverberg
21 Oct 14 12:41:06
Stocks reporting earnings Wednesday BMO: $ANGI $BEAV $BIIB $BA $DOW $EMC $GD $LL $NOC $PII $SWK $TMO $TUP $WYNN
Tom Wrigley
21 Oct 14 12:36:33
pm $BRCM $CREE $DFS $ETFC $IRBT $SIX $SONC $VMW $YHOO am $ANGI $BIIB $BA $EMC $LL $PII #earnings http://t.co/OgMEwPcCs3
Zubeyr Kamil Açıksar
21 Oct 14 12:08:46
RT @ThinkingAlpha: Stocks reporting earnings BMO 10/22: $ANGI $BEAV $BIIB $BA $DOW $EMC $GD $LL $NOC $PII $SWK $TMO $TUP $WYNN you watching…
Thinking Alpha®
21 Oct 14 12:08:31
Stocks reporting earnings BMO 10/22: $ANGI $BEAV $BIIB $BA $DOW $EMC $GD $LL $NOC $PII $SWK $TMO $TUP $WYNN you watching any? $WYNN for me
Day Trade Alerts
21 Oct 14 11:38:46
RT @Estimize: $ANGI reports before the open tomorrow, Estimize Consensus -0.03 EPS and -0.54M Revs compared to WS http://t.co/Ua1bUnxt7K
Estimize
21 Oct 14 11:31:27
$ANGI reports before the open tomorrow, Estimize Consensus -0.03 EPS and -0.54M Revs compared to WS http://t.co/Ua1bUnxt7K
Irma Doucet
21 Oct 14 11:00:54
$ANGI Angie's List: Sale May Attract Private Equity Firms (ANGI) http://t.co/K4ETPIfiW6
Marshall McLuhan
20 Oct 14 22:08:46
RT @augieray: #SocialMedia stocks YTD: $FB +33% $YELP -3% $LNKD -8% $BV -10% $MKTO -19% $TWTR -24% $AWAY -26% $ZNGA -40% $ANGI -44% $GRPN -…
US Banking News
20 Oct 14 22:08:38
Angie's List to release Q314 earnings on Wednesday. Analysts expect -0.07 EPS. $ANGI http://t.co/Zcxkep2Ziw
Forward Machine
20 Oct 14 22:01:57
RT @augieray: #SocialMedia stocks YTD: $FB +33% $YELP -3% $LNKD -8% $BV -10% $MKTO -19% $TWTR -24% $AWAY -26% $ZNGA -40% $ANGI -44% $GRPN -…
foolsgold
20 Oct 14 22:00:04
Watching 10/21 $AFFX $ANGI $ARIA $AUQ $CTIC $CY $DOM $HPJ $JCP $RMTI $SPEX $WHX
chartseer
20 Oct 14 21:08:39
RT @bangersnpip: Stock Watchlist 21 October: $ARNA $BAA $CNAT $DGAZ $COCP $RIC $ANGI $GCAP #stocks #charts #trading http://t.co/l98g5FSteC
Trade Under Ten
20 Oct 14 20:24:33
Stock Watchlist 21 October: $ARNA $BAA $CNAT $DGAZ $COCP $RIC $ANGI $GCAP #stocks #charts #trading http://t.co/l98g5FSteC
Mitch
20 Oct 14 18:29:08
RT @Dvm001Mike: Pickle's Picks for Tuesday - $NQ, $QLGC, $ANGI, $GTI, $KBH, $PIR, $LPX, $SNSS http://t.co/WjXlBh8MPi,
Mike
20 Oct 14 17:57:06
Pickle's Picks for Tuesday - $NQ, $QLGC, $ANGI, $GTI, $KBH, $PIR, $LPX, $SNSS http://t.co/WjXlBh8MPi,
Forex Signal
20 Oct 14 17:05:47
RT @Maxknew: Hunting #Wave3 ------ $ANGI reporting midweek. #elliottwave http://t.co/zamjBRqJKh
Mikael Koskela
20 Oct 14 16:58:01
Hunting #Wave3 ------ $ANGI reporting midweek. #elliottwave http://t.co/zamjBRqJKh
Adam Goulburn
20 Oct 14 16:19:00
This is a deliberate ploy by @pmarca to make lists hot again... checking $ANGI stock price right now
US Banking News
20 Oct 14 16:17:52
Angie's List $ANGI to Release Earnings on Wednesday http://t.co/WophfkPcCK
HotKeyTrading
20 Oct 14 15:00:17
Insiders Buying: $THLD $JAZZ $SFM $RCAP $TMH $AYI $ATU $COG $SPPI $EVTC $THO $BRCD $ANGI $ASBC $AFSI http://t.co/XQITF0lRKD #daytrading
RC
20 Oct 14 12:57:50
Daily Scorecard | Momentum Trading with RaginCajun http://t.co/V5DPLi5pFi $GPRO $SHLD $ANGI $LULU $MOS $WWE $WTW
Mr. Bottom Bouncer
20 Oct 14 12:48:29
$ANGI could have a insane gap fill tomorrow if it gets a nice close...
StockConsultant.com
20 Oct 14 11:31:22
$ANGI into the upside gap, resistance above at 10.13 area, http://t.co/QnWR9hro9d http://t.co/78niAhdLkt
Ambrot Capital
20 Oct 14 11:25:04
This week's earnings report focus: $AAPL $CMG $TXN $VRX (Mon) $YHOO $MCD $KO $HOG $VZ $CP (Tues) $YELP $ANGI $CAKE $XRX (Wed) #watchlist
4-traders.com
20 Oct 14 11:20:04
Angie List : Calls for Awareness, Safer Practices around Lead Paint http://t.co/3udtiEKe1m $ANGI
Copies And Print
20 Oct 14 11:15:08
RT.@1kWattsRealtor: Extended #Warranties: Some Are Worth It, Most Are Worthless http://t.co/vQNxXD2cXe via @daily_finance $ANGI $AXP $NYT
Jason Lafler
20 Oct 14 10:50:54
$ANGI ah crap the street is on this one time to sell
PlungeProtectionTeam
20 Oct 14 10:37:20
watching $ANGI for 8.79 HOD break. Big gap fill above
4-traders.com
20 Oct 14 10:20:11
Angie List : Metal roofing company earns service award from Angie's List for 2013 http://t.co/Xzi96HS1Xw $ANGI
Anita D. Watts
20 Oct 14 09:21:34
Extended Warranties: Some Are Worth It, Most Are Worthless http://t.co/fjy3w2WCI0 via @daily_finance $ANGI $AXP $NYT #homewarranties #
Samantha LaDuc
20 Oct 14 09:16:21
$ANGI and $ARIA have nothing in common but they both look good to me.
Jodi Lessmann
20 Oct 14 08:03:12
Get a 5-week view of upcoming #earnings reports http://t.co/fZmtHjPPEP $AAPL $KO $MCD $CREE $YHOO $ANGI $BA $YELP $MLNX $AAL $AMZN $NDAQ
Turner LaCas
20 Oct 14 07:30:06
Wall Street This Week: Forecasts by Microsoft, Ford on Deck http://t.co/OAb2bn28r9 via @daily_finance $MSFT $IRBT $ANGI
Turner LaCas
20 Oct 14 07:25:10
Wall Street This Week: Forecasts by Microsoft, Ford on Deck http://t.co/HGklYnaUfa via @daily_finance $MSFT $IRBT $ANGI
HotKeyTrading
20 Oct 14 03:00:06
Insiders Buying: $JAZZ $SFM $RCAP $TMH $AYI $ATU $COG $SPPI $EVTC $THO $BRCD $ANGI $ASBC $AFSI $NLS http://t.co/Vv2VEn80mr #daytrader #dow
Nick Strada
19 Oct 14 21:18:43
RT @augieray: #SocialMedia stocks YTD: $FB +33% $YELP -3% $LNKD -8% $BV -10% $MKTO -19% $TWTR -24% $AWAY -26% $ZNGA -40% $ANGI -44% $GRPN -…
G_Schwarzenbach
19 Oct 14 20:40:41
RT @valuewalk: Wally Weitz Q3 2014 Shareholder Letter http://t.co/2jI4rUChVo $T $DTV $AGN $VRX $RRC $ANGI $WAIR $ACIW
Emergent Search
19 Oct 14 20:37:31
RT @augieray: #SocialMedia stocks YTD: $FB +33% $YELP -3% $LNKD -8% $BV -10% $MKTO -19% $TWTR -24% $AWAY -26% $ZNGA -40% $ANGI -44% $GRPN -…
Ern Malley of Scrub
19 Oct 14 19:59:19
RT @augieray: #SocialMedia stocks YTD: $FB +33% $YELP -3% $LNKD -8% $BV -10% $MKTO -19% $TWTR -24% $AWAY -26% $ZNGA -40% $ANGI -44% $GRPN -…
Brent Choi
19 Oct 14 19:34:10
RT @augieray: #SocialMedia stocks YTD: $FB +33% $YELP -3% $LNKD -8% $BV -10% $MKTO -19% $TWTR -24% $AWAY -26% $ZNGA -40% $ANGI -44% $GRPN -…
Investimonials.com
19 Oct 14 19:26:38
RT @timothysykes: Watch my free 6-hour Moscow Speech http://t.co/avffgsI2RN EVERYONE on $FB $TWTR $LNKD $ANGI $YY $MEET $MOBI go $STUDY, yo…
Profit.ly
19 Oct 14 19:26:25
RT @timothysykes: Watch my free 6-hour Moscow Speech http://t.co/avffgsI2RN EVERYONE on $FB $TWTR $LNKD $ANGI $YY $MEET $MOBI go $STUDY, yo…
john brooke
19 Oct 14 19:11:42
RT @augieray: #SocialMedia stocks YTD: $FB +33% $YELP -3% $LNKD -8% $BV -10% $MKTO -19% $TWTR -24% $AWAY -26% $ZNGA -40% $ANGI -44% $GRPN -…
ValueWalk
19 Oct 14 19:04:49
Wally Weitz Q3 2014 Shareholder Letter http://t.co/2jI4rUChVo $T $DTV $AGN $VRX $RRC $ANGI $WAIR $ACIW
Josh Fenster
19 Oct 14 19:02:05
RT @augieray: #SocialMedia stocks YTD: $FB +33% $YELP -3% $LNKD -8% $BV -10% $MKTO -19% $TWTR -24% $AWAY -26% $ZNGA -40% $ANGI -44% $GRPN -…
Rob Schwartz
19 Oct 14 19:01:39
RT @augieray: #SocialMedia stocks YTD: $FB +33% $YELP -3% $LNKD -8% $BV -10% $MKTO -19% $TWTR -24% $AWAY -26% $ZNGA -40% $ANGI -44% $GRPN -…
Harrison Polites
19 Oct 14 19:01:17
RT @augieray: #SocialMedia stocks YTD: $FB +33% $YELP -3% $LNKD -8% $BV -10% $MKTO -19% $TWTR -24% $AWAY -26% $ZNGA -40% $ANGI -44% $GRPN -…
				
				
  +Follow October 3, 2013 12:23PM
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