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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
Market Parse
6 Mar 15 16:00:37
@BigToona72 Your tweet about $ANGI had a sentiment of 5 and was featured on Market Parse. http://t.co/5WyUW5R8WJ
vmcampos
6 Mar 15 12:53:44
How’d my stocks do today? Well, $ANGI, $NTDOY, & $AAPL are in the green. The rest? Not so much!
Chris Thomson
6 Mar 15 12:49:58
@RaginCajun @tradingaddicts A sad day when $ANGI outperforms $LBIO by a wide margin and Mariano Riveras me. Congrats, OA.
Irma Doucet
6 Mar 15 11:34:01
$ANGI Why Boston Scientific Corporation (BSX), Angie's List Inc (ANGI) and Jack in ... http://t.co/gwsaGcj3IL
Johnny Trades
6 Mar 15 07:42:12
$ANGI Trying to mount a bounce on the daily still small vol
Daily Contracts
6 Mar 15 06:57:01
Real-Time feed of company contracts, original agreements and executive updates from $ANGI http://t.co/sB18NcfQ6n
Breaking News
6 Mar 15 05:27:44
$ANGI Angie's List to Present at Upcoming Investor Conferences http://t.co/iPq0qPlbzs
Stocks News&Markets
6 Mar 15 05:25:05
$ANGI - Angie's List to Present at Upcoming Investor Conferences http://t.co/kXxzFV3SLz
john smith
6 Mar 15 05:25:04
$ANGI - Angie's List to Present at Upcoming Investor Conferences http://t.co/f61XBuVR3o
chartguy89
6 Mar 15 01:12:57
ANGI +0.45% Stock Charts $ANGI Angie's List Inc. (NASDAQ) Last Updated: 03/06/2015 03:12:57 ANGI Stock Chart - http://t.co/5rp23HWLc3
Clark Joseph Kent
5 Mar 15 18:29:44
Top Gainers on Earnings, Last 30 Days $ANGI $IFON $BNFT $EGRX $CRGP $UNXL $GLUU $RCKY $NTWK $MDR http://t.co/Y3S4Lek4qz
Carl Az
5 Mar 15 12:43:10
long $RGSE .385 $ANGI 6.7 $ENTR 2.98 $IO 2.28. Pissed I missed my entry in $UAM at 8.95 this am. next time.
Daily Contracts
5 Mar 15 12:31:01
Real-Time feed of company contracts, original agreements and executive updates from $ANGI http://t.co/sB18NcfQ6n
StockSpotter
5 Mar 15 10:33:14
$ANGI up 0.7% to 6.74 possible bullish reversal? #stocks #options #trading http://t.co/d1HkCK9t11
Daily Contracts
5 Mar 15 09:33:00
Real-Time feed of company contracts, original agreements and executive updates from $ANGI http://t.co/sB18NcfQ6n
Locate Express
5 Mar 15 08:16:09
@Nextdoor Useful website, but biz model? Took $ANGI 20 yrs to cash flow+. Local sales is highly fragmented & dog walkers don't spend on ads.
Locate Express
5 Mar 15 07:40:07
Unbelievable! @nextdoor valuation is 3x $ANGI w/no revenue and a biz plan selling to plumbers. http://t.co/c9b9T5yEaU
Sean
5 Mar 15 06:59:56
Long Short Value Watchlist: LONG: $REGI, $ARCP, $GDOT, $SUNE, $ONNN, $EDGW, SHORT: $Z, $LL, $ANGI, $GSAT, $XOXO, $AME, $STRP, $HSTM
TRADEaddiction
5 Mar 15 06:24:44
$ANGI nice base to take some long for swing into hi 7s and breakout into 8s #swing LT
Jarrad Fiorito
5 Mar 15 06:02:41
Keep an eye on $ANGI if we begin to move off this base, especially for a swing trade to $8+ http://t.co/7gQ8M7ZVOA
Daily Contracts
5 Mar 15 05:01:02
Real-Time feed of company contracts, original agreements and executive updates from $ANGI http://t.co/sB18NcfQ6n
Mac
5 Mar 15 00:36:19
$ANGI Look like shorts are leaving this alone. Support has been established. Any PR will punish the shorts more.
InterCooler
5 Mar 15 00:32:31
Analysts’ Recent Ratings Changes for Angie's List $ANGI http://t.co/Yid4c1oNIN
StockNewsWires
5 Mar 15 00:26:04
$ANGI: Analysts' Recent Ratings Changes for Angie's List (ANGI): http://t.co/9C26udzyXh
US Banking News
5 Mar 15 00:20:02
Analysts’ Recent Ratings Changes for Angie's List $ANGI http://t.co/7Us48JyQtI
Ryan Patrick
4 Mar 15 18:44:35
The only thing Angie's List is "revolutionizing" is how investors view crap companies that charge for free information. $ANGI
Nick Brisson
4 Mar 15 15:55:04
$ETSY another website that will be out of date in 3 years and its stock in the gutter #bookit just like $P $ANGI $YELP
Matt Landman
4 Mar 15 14:57:54
11 stock bubbles that have Already happened http://t.co/HhXUHNRI1t $BABA $PBPB $ZNGA $GPRO $ANGI #bears
Ivan Bunin
4 Mar 15 14:08:51
$ANGI http://t.co/3q5gMFwC7W
Thomas Collins
4 Mar 15 14:04:41
$ANGI Why Boston Scientific Corporation (BSX), Angie's List Inc (ANGI) and Jack in ... http://t.co/wCxojGaAts
Penny Stock Secret
4 Mar 15 13:56:28
Yesterday We Made $89,000 In Just One Trade More Info Here http://t.co/NovWYe2RAx .. $GWGH $RCPT $ANGI
Quantcha
4 Mar 15 11:48:35
Synthetic Long Discount Alert: ANGIE'S LIST $ANGI trading at a 12.11% discount for the 21-Aug-2015 expiration http://t.co/VGtyzTaZOz
High Tides Trading
4 Mar 15 10:34:18
$ANGI holding 6.50 pretty well. Watching it for a long in the next few days with 6.40 stop loss.
Zen-Trade
4 Mar 15 03:28:21
Stocks up 30% in month $ACI $ACRX $AMKR $AMRS $ANTH $ARQL $APRI $ARO $ATHX $ATOS $ANGI $BIOC $BSDM $CRC $CERE $EXEL $KBIO $MBLX $MTSN $REE
Sourcingstocks.com
3 Mar 15 15:49:22
$ANGI is cheap at these levels and a good one to sock away @ http://t.co/Wqwp2Se07m
Stocks News&Markets
3 Mar 15 13:25:20
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/6SfgQqwbVT
Stocks News&Markets
3 Mar 15 13:25:19
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/gJ08sOizzK
Stocks News&Markets
3 Mar 15 13:25:18
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/rHMqiLyg5j
Stocks News&Markets
3 Mar 15 13:25:17
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/BQKyQyDrBM
Stocks News&Markets
3 Mar 15 13:25:17
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/AH2aulhfNv
john smith
3 Mar 15 13:25:15
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/sd1iSiLu0A
john smith
3 Mar 15 13:25:13
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/c4f7q9Kb1X
john smith
3 Mar 15 13:25:12
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/G4s54b4ifx
john smith
3 Mar 15 13:25:11
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/49HeM2JFSX
john smith
3 Mar 15 13:25:10
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/g97H9ySwVn
Stocks News&Markets
3 Mar 15 13:24:27
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/5aSouAmIdl
Stocks News&Markets
3 Mar 15 13:24:26
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/9bGKGt6pms
Stocks News&Markets
3 Mar 15 13:24:26
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/Va4XYEECIl
john smith
3 Mar 15 13:24:25
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/sKui5Konxg
john smith
3 Mar 15 13:24:24
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/NhEdDyuDz9
				
				
  +Follow October 3, 2013 12:23PM
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