+ Watch ANGI
on My Watchlist
Angie's list faces the same problem camera manufacturers face now that everyone has a smartphone - services like Yelp cover a wide range of reviews for free while Angie's list provides reviews for a subset of businesses for a price.Offering a better service (and I believe they do) isn't going to matter when most people's needs are met by free services. In the long run, there won't be enough of a base of clients willing to pay for the extras.
No profits, increased marketing costs, increased competition.
Short term, they'll get a bounce or two but I just do not understand how they make money over time to the point where they grow. I also see potential lawsuits as evaluated businesses and individuals react to comments they find unfair. Now they are cutting prices on a service people just don't seem to want.
Way too beaten down. Expect this to add 50% by the end of 2014
Bad news, they need to continue cutting prices in order to generate subscriber growth. The effect on earnings will be negative.http://www.nbcnews.com/business/angies-list-cuts-prices-test-shares-drop-8C11329864One of my larger short positions. The business model here is broken, long term there is no reason for the company to exist.
I found this company while doing a screen to research potential opportunities to short. In the end I selected a different company to short in my own portfolio, but the fact this one remained as long as it did while researching and eliminating possibilities speaks volumes for how it will do in the long run. And in comparison to the S&P 500? Underperform - easy call.
Totally overvalued. Huge marketing cost. Rising competitiors. Bad customer value.
Angies List was a great idea initially, to charge consumers reviews of local contractors and such. But lately, as competitors have started to pop up, it has become somewhat of an extortion scheme of the unsuspecting. Expect this company to continue under performing.
The smart money loves ANGI. I am a young investor with little funds IRL to invest, but this stock is the poster child of ridiculousness. If I could afford to short a stock, this would be the one. I will not bore you with numbers as Cirtron has that covered. I will not bother you with fantasy EBIDA , which the news seems to mention. Nor will I bore you with regurgitated facts from the slanted, interested, articles that Seeking Alpha spins. Angies List reminds me of AOL when folks no longer needed their services. Remember: not too long ago when the internet arrived, AOL held subscribers email addresses hostage for fees. What did AOL do before they bled poor Ted dry? Well, they started ripping off their enormous consumer base. Folks, we are witnessing this happening with ANGI right now. Need evidence other than the hundreds of legitimate reviews from paying members, well just take a look at the insider trading. SELL SELL SELLIn the same vein, ANGI is lowering subscriber rates in order to feed the service provider advertising from contractors. Which incidentally as a group, probably do not notice the recurring fees to the detail as a prudent consumer. I urge you to conduct a Google search for "contractor (your city)". I doubt that you will see Angie. The days of Google search manipulation propping up this company is over.ANGIES LIST IS THE ONLY POPULAR REVIEW SERVICE THAT I KNOW OF THAT DOES NOT LIST ATTORNEYS. I WONDER WHY?
Another BBB style extortion scheme. No Thanks
Can't believe this is an actual company.
LarryRicardo red thumbed this and it's plenty good for me.
How does this stock continue to rise? I can't figure out any viable, sustainable business model for this company and yet it has more than doubled since I gave it a thumbs down. Who can tell in this crazy game...
Price to eArnings are far out of wack- only real value is the possible purchase by a shoo, Facebook or other Internet gant looking for addition services to add to their folio
P/B and D/E just too high.
This is what I get for red-thumbing random things while bored. On that note, surely this stock will come crashing back down to reality...
I actually like this company, but I struggle to justify the valuation. Hard to call when the valuation will cave, but as long as there is positive momentum this should rise. The two catalysts to push it down are an earnings call that shows acceleration slowing. Second is a hiccup in the housing market. My look on valuation:Enterprise value: $1.1BMembers: 2MValue per member (current): $559Reported market penetration: 6.6%Market penetration in Indianapolis market (most mature, 10+ years): 20%Potential total market size: 3x what it currently isTotal member potential: 6.1MEV / total member potential: $184 per memberRevenue per member in mature markets (pre 2003): $156Revenue per member in mature markets net of marketing: $114So if we assume they achieve full market penetration and are able to match their mature market revenue per member, this business still trades at 1.2x that revenue per member and 1.6x revenue net of marketing per member. That just seems a little like a stretch.
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