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Angie’s List (ANGI) Plummets 16 Percent After Slashing Membership Costs

  +Follow October 3, 2013 12:23PM
Tickers Mentioned:

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
Bilo Selhi
3 Jul 15 18:50:15
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3 Jul 15 12:00:01
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3 Jul 15 11:00:01
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3 Jul 15 10:02:48
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Bilo Selhi
3 Jul 15 08:25:48
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Bilo Selhi
3 Jul 15 08:01:45
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3 Jul 15 07:37:38
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3 Jul 15 07:00:01
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3 Jul 15 06:25:00
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Bilo Selhi
3 Jul 15 06:01:26
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3 Jul 15 05:49:23
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Bilo Selhi
3 Jul 15 05:01:22
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3 Jul 15 05:00:04
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Bilo Selhi
3 Jul 15 04:13:19
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Bilo Selhi
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3 Jul 15 03:51:16
VTMB Vitamin Blue, Inc. Short Sales http://t.co/s2rfya1jov $VTMB $ANGI $EEM $UUP #VTMB #nasdaq #pennystocks
3 Jul 15 03:51:10
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IH News Desk
3 Jul 15 03:50:07
VRX Valeant Pharmaceuticals Intl, Inc. Last Trade http://t.co/RcoBQ1acng $VRX $ANGI $USO $FV #VRX #finance #pennystocks
Bilo Selhi
3 Jul 15 03:49:18
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3 Jul 15 03:48:35
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3 Jul 15 03:48:23
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3 Jul 15 03:45:36
RSP Guggenheim S&P 500 Equal Weight ETF Open http://t.co/cr5aDQRKKm $RSP $FDGRX $ANGI $CEF #RSP #share #stockmarket
3 Jul 15 03:45:20
RCD Guggenheim S&P 500 Equal Weight Consumer Discretionary ETF Last Price http://t.co/OtHERGVWsJ $RCD $VLS.L $OPK $ANGI #RCD #stock…
Rosner Stocks
3 Jul 15 03:45:14
MSTX Mast Therapeutics, Inc. Last Price http://t.co/NXcEDNtubt $MSTX $ANGI $GDX $AHS #MSTX #stockmarket #stockmarket
3 Jul 15 03:45:14
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Investors Hangout
3 Jul 15 03:44:11
NEM Newmont Mining Corp. 52Wk Low http://t.co/ThHoilo4MY $NEM $UPS $ANGI $USO #NEM #investing #tradeideas
3 Jul 15 03:43:09
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3 Jul 15 03:43:09
IHPosts: ITB iShares Dow Jones U.S. Home Construction Ideas http://t.co/wrUDUhOJc6 $ITB $ANGI $BLRX $AER #ITB #… http://t.co/Z2kvWG3C1I
3 Jul 15 03:43:07
IHNewsDesk: HSY Hershey Foods Corp. Filings http://t.co/4VUIxnpAuB $HSY $MON $CI $ANGI #HSY #finance #nasdaq re… http://t.co/Z2kvWG3C1I
3 Jul 15 03:42:38
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3 Jul 15 03:42:24
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Investors Hangout
3 Jul 15 03:42:17
ITB iShares Dow Jones U.S. Home Construction Ideas http://t.co/ZVxtlQyBnj $ITB $ANGI $BLRX $AER #ITB #finance #stock
3 Jul 15 03:42:14
INT.V Intertainment Media Inc. Current Price http://t.co/2jbPTmrhvo $INT.V $ANGI $CNR.TO $BAC #INT.V #share #investing
IH News Desk
3 Jul 15 03:42:11
HSY Hershey Foods Corp. Filings http://t.co/TlQeAqFuEa $HSY $MON $CI $ANGI #HSY #finance #nasdaq
Investors Hangout
3 Jul 15 03:41:08
GPOR Gulfport Energy Corp. Prev Close http://t.co/K2u8qGKHRM $GPOR $MMMW $CLF $ANGI #GPOR #stocks #share
3 Jul 15 03:39:39
FNMA Federal National Mortgage Bid http://t.co/oGm4tRDM4w $FNMA $INT.V $ANGI $RDSH #FNMA #invest #stocks
3 Jul 15 03:39:14
EWZ Brazil iShares Day High http://t.co/DwRpf6wHek $EWZ $ANGI $SDLP $TZA #EWZ #tradeideas #stockmarket
3 Jul 15 03:38:08
DRV Direxion Daily Real Estate Bear 3x Shares Prev Close http://t.co/3XWvEHyuOe $DRV $AIG $GDX $ANGI #DRV #nasdaq #invest
3 Jul 15 03:37:35
ELD.TO Eldorado Gold Corp. Prev Close http://t.co/ebl90b9Mup $ELD.TO $AMD $ANGI $MON #ELD.TO #finance #pennystocks
3 Jul 15 03:36:10
DIA SPDR DJ Industrial Average ETF Trust Volume http://t.co/EQDgVVXem2 $DIA $GILD $ANGI $BSX #DIA #finance #investing
3 Jul 15 03:35:08
COW iPath Bloomberg Livestock Subindex Total Return ETN Filings http://t.co/M9uaOPn7HI $COW $ANGI $VXX $IEF #COW #stock #invest
3 Jul 15 03:34:38
CMCSA Comcast Corp. Message Board Posts http://t.co/f4CHd1qt7R $CMCSA $DRNK $EQB.TO $ANGI #CMCSA #nasdaq #stock
  +Follow October 3, 2013 12:23PM



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