What Happened?
Shares of home services online marketplace ANGI (NASDAQ: ANGI) jumped 4.6% in the afternoon session after the company reported strong fourth-quarter results, significantly surpassing analysts' sales and profit expectations. Its service request volume, a key pulse check on customer demand, exceeded Wall Street estimates, driving the revenue beat. The company didn't explicitly provide sales forecasts but gave EBITDA guidance in line with consensus estimates, which is reassuring. Zooming out, we think this quarter featured some important positives.
After the initial pop the shares cooled down to $1.80, up 4.7% from previous close.
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What The Market Is Telling Us
Angi’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 29 days ago when the stock gained 16.7% on the news that IAC's board approved a plan to fully spin off its stake in Angi. As part of the move, Joey Levin will step down as IAC CEO to become Executive Chairman of Angi. The spin-off is expected to give IAC shareholders direct ownership of Angi, fully separating the two companies. It will also eliminate Angi's dual-class structure, streamlining its governance. This simplified structure is expected to support Angi's growth by providing more flexibility to make acquisitions, raise capital, and attract talent.
Angi is up 11.2% since the beginning of the year, but at $1.80 per share, it is still trading 40% below its 52-week high of $3 from February 2024. Investors who bought $1,000 worth of Angi’s shares 5 years ago would now be looking at an investment worth $208.41.
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