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Angie’s List is a sham. Their main source of revenue is not from members, but from from advertising from service providers. This is in direct opposition to their unique value proposition to consumers, in which they allege that “Companies cannot pay to be on Angie’s List”. They charge both consumers and vendors for access a marketplace of ratings. Not only that, but you can get the same information for free from competitors like Google Places or Yelp, which have a much broader base of reviewers and are free. Angie’s has a flawed business model. They spend around $75 to acquire a new customer. Annual fees are posted at $30 but they have been giving away free memberships, dropping average revenue per member to closer to $25/year. Renewal rates are only in the range of 70%, meaning that members stick around for 3 years on average. If you spread the $75 acquisition cost over 3 years of $25 dues, Angie’s only breaks even. Not really a business there. Angie's has serious liquidity problems. They are running out of cash, fast. Cash on hand declined from $88M in Jan 2012, to $42M in Jan 2013. Net loss was -$52M in 2012, an increase from -$49M in 2011. Their cash problem is accelerating. How have they been able to stay in business so far? They’re borrowing. Angie’s has a ton of debt. If you looked at shareholder equity in Feb 2013, after subtracting their debts, equity was $5M.Expect ANGI's SP to halve in the next 2 years. Bankruptcy in 4-5 years.
I had an idea to make a site like this about a year before this came out only the site I thought up would have included places you worked at. Meaning you could rate past jobs and it could track turn over rates for companies. But while thinking about it I realized that it wouldn't generate cash and therefore could become corrupt someday by fasle reviews by companies paying off people to write false reviews and lack of money to pay people to scan through the site to take false reviews down. Basically craigslists problem.
don;t know anyone who uses this, and I don;t know anyone who wants to try this
doubtful they should even be on the exchange
Angie´s List± Sales going up and 1% cash flow. End ASAP.
I actually think this is not a bad concept. I was a customer, and they have good customer service. However, I never got any valuable information from them, despite being in a metropolitan area. I've been a homeowner for years and already know more about who is recommended than Angie's List does. They kept filling up my email with ads and specials, and I finally canceled out of frustration.They're losing money. In fact, they don't appear to ever have made money. Insiders are selling. They just put in a new 12-month low despite the general bounce in the market today.I suspect this company won't survive five years.
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
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...
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