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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
FonsieTrader
18 Sep 14 04:35:57
Moved Lower Bollinger Band 1/3 $ACN $ADBE $ALJ $AMCX $ANGI $APOL $BAX $BGC $BMS $CAT $CFX $CIG $CPST $CRR $CSC $CXP http://t.co/4kCv2XmHI3
chartguy89
17 Sep 14 16:53:20
ANGI 7.19 Stock Charts $ANGI Angie's List Inc. (NASDAQ) Last Updated: 09/17/2014 18:53:26 ANGI Stock Chart - 1 http://t.co/jQFzrVMCoR
Tim Kelleher Corp
17 Sep 14 13:18:02
$ANGI - Nice call by @CRAMER @CNBC pumping this up to $8.15 Monday night - New all time lows
Maverick Analytics
17 Sep 14 13:16:07
Ugly high volume breakdown in $ANGI last half hour. Only matter of weeks before this trades below 5. Called the classic H&S setup on 8/28
MarketScreener
17 Sep 14 12:45:44
Angie\'s List Inc: The stock is testing its lows. $ANGI http://t.co/6lsRaKm1Lv http://t.co/ScR3Hrytr8
Gilly
17 Sep 14 12:35:25
$ANGI is going to zero imho wish more volume i might short some
James P Worthy
17 Sep 14 10:00:37
$ANGI Options Check-Up: Angie's List Inc, Citigroup Inc, and Cree, Inc. http://t.co/kDdJ9bYJol
US Banking News
17 Sep 14 05:40:46
Insider Buying: Tri Ventures, Inc. Buys 2,663 Shares of Angie's List Stock $ANGI http://t.co/alpt3Otd2l
Ticker Report
16 Sep 14 22:28:47
Angie's List Short Interest Up 11.6% in August $ANGI http://t.co/a4hmE8mYZQ
US Banking News
16 Sep 14 17:53:05
Angie's List major shareholder Purchases $20,718 in Stock $ANGI http://t.co/BSZfy3DqlL
US Banking News
16 Sep 14 17:22:45
Angie's List major shareholder Tri Ventures, Inc. Purchases 2,663 Shares $ANGI http://t.co/uoj6Wxuwig
Thomas Collins
16 Sep 14 14:00:47
$ANGI More Reasons To Short Angie's List (ANGI) http://t.co/iJIHhjNF1k
Lucretia
16 Sep 14 14:00:47
$ANGI Is There Hope Of A Turnaround At Angie's List? (ANGI) http://t.co/aY4D7Qeoch
VisualStock Resource
16 Sep 14 13:26:18
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/moae56GJoN
john smith
16 Sep 14 13:25:43
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/7ALRSngMUN
4-traders.com
16 Sep 14 13:25:12
Angie List : LIST, INC. : Change in Directors or Principal Officers (form 8-K) http://t.co/bOHGR6WXNe $ANGI
VisualStock Resource
16 Sep 14 13:22:45
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/vZvSQsL17c
VisualStock Resource
16 Sep 14 13:22:43
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/rU6MndgF2m
john smith
16 Sep 14 13:22:38
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/hkKjqsK8V7
john smith
16 Sep 14 13:22:35
$ANGI - Statement of Changes in Beneficial Ownership (4) http://t.co/0YhjhkYxym
VisualStock Resource
16 Sep 14 13:16:23
$ANGI - Current Report Filing (8-k) http://t.co/y1huV3J4DX
john smith
16 Sep 14 13:16:18
$ANGI - Current Report Filing (8-k) http://t.co/fzie9vLAx4
MarketScreener
16 Sep 14 06:56:25
Angie\'s List Inc: The stock is testing its lows. $ANGI http://t.co/6lsRaKm1Lv http://t.co/K8I9XM3C3z
JNM
16 Sep 14 06:52:51
RT @myrollingstocks: we are watching $ANGI http://t.co/ZG7zR7baaT
Myrollingstocks
16 Sep 14 06:50:21
we are watching $ANGI http://t.co/ZG7zR7baaT
US Banking News
15 Sep 14 22:23:32
Angie's List Short Interest Up 11.6% in August $ANGI http://t.co/oiD8xSdKyC
Tim Knight
15 Sep 14 17:46:32
$ANGI looks like it's going to be the $ATHM of the modern era. What a piece o' crap stock!
Craig Passman
15 Sep 14 17:23:25
@jimcramer $fb should buy $angi at these levels. Augment 'likes and posts' of your personal universe with same for your consumer universe.
Trade Under Ten
15 Sep 14 16:44:37
Commented on StockTwits: You see $ANGI close today? Breakdown http://t.co/ckUxIjov2n
Lucretia
15 Sep 14 15:31:21
$ANGI Angie's List - Time For Plan B (ANGI) http://t.co/yzfQST3FB0
Tradersfly
15 Sep 14 15:18:16
$ANGI - #Quickchart - this stock is toast - stay away... don't go near it with a 10 ft pole... http://t.co/822DCe6OVW
Mike from Bear&Bull
15 Sep 14 11:45:12
More Reasons To Short Angie's List $ANGI http://t.co/tp4DQ7f6oT
James P Worthy
15 Sep 14 11:30:45
$ANGI Angie's List - Time For Plan B (ANGI) http://t.co/roiQGoEWd9
MarketScreener
15 Sep 14 11:05:47
Angie\'s List Inc: The stock is testing its lows. $ANGI http://t.co/6lsRaKm1Lv http://t.co/GxglvFDXu2
PitTrading101
15 Sep 14 10:47:36
$ANGI 52 WL
Van Dinh
15 Sep 14 06:51:53
RT @goldsachstrader: @jimcramer Should $YELP buy $ANGI?? Ur thoughts?
Van Dinh
15 Sep 14 06:51:17
RT @ForTraders: Angie List : to Present at the MKM Partners Entertainment, Leisure & Internet Conference http://t.co/AUFGyQqD1w $ANGI
BV Technology
15 Sep 14 05:08:19
$ANGI Angie's List to Present at the MKM Partners Entertainment, Leisure & Internet Conference.. http://t.co/ibRxS2podJ
4-traders.com
15 Sep 14 05:05:26
Angie List : to Present at the MKM Partners Entertainment, Leisure & Internet Conference http://t.co/AUFGyQqD1w $ANGI
Trade Under Ten
14 Sep 14 08:37:11
Stock Watchlist 15 September: $ANGI $DVR $GALT $TWER #stocks #charts #trading http://t.co/wDoYPj3e1l
FonsieTrader
13 Sep 14 09:55:11
Parabolic sar Buy Signals 1/3 $ABCO $ADS $AMTD $ANGI $ARAY $ARNA $ASBC $BIG $BK $BPOP $C $CSX $DKS $ECL $FIVE $FSLR http://t.co/AeNK1Iu1mD
Stockmarketsvane
12 Sep 14 17:17:22
Swing Sell Picks: $ANGI, $CCO.CA http://t.co/zGcMBNFb7p
Van Dinh
12 Sep 14 08:47:37
RT @offshorehunters: $ANGI bottom perk on watch for a move over 7.80
Offshorehunter
12 Sep 14 07:43:00
$ANGI testing
Offshorehunter
12 Sep 14 07:23:33
$ANGI bottom perk on watch for a move over 7.80
STOCKTON
12 Sep 14 06:58:28
$ANGI about to squeeze
TickerChirp
11 Sep 14 10:14:05
Popular Tweets Pertaining to $ANGI on 09/11/2014 http://t.co/jIFbJJi6uu
Goldsachstrader
11 Sep 14 07:55:00
@jimcramer Should $YELP buy $ANGI?? Ur thoughts?
Van Dinh
11 Sep 14 07:47:56
RT @BiotexGuy: @TheRealRocket customers who pay on the premise that ratings aren't bought! $ANGI bagholders still waiting for a b/o from $2…
Analyst Ratings
11 Sep 14 06:44:04
Get the latest news and updates for $MN $EA $IMI $ANGI $MOG-A automatically with ARN Daily http://t.co/nSJuDsYidj
				
				
  +Follow October 3, 2013 12:23PM
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