Why Angi Stock Slumped This Week
Shares of Angi (NASDAQ: ANGI) slumped as much as 13.4% this week, according to data from S&P Global Market Intelligence. The home repair and contractor marketplace, which is majority owned by IAC, reported strong quarterly earnings but pointed to disappointing business trends for this upcoming quarter. As of the close on Thursday, Aug. 11, the stock is down 13.2% this week.
Angi reported second-quarter earnings after the close on Aug. 9. Revenue was $515.8 million, up 23% year over year, with a net loss of $0.05 per share. These are better than the consensus analyst estimates, which called for $500.5 million in revenue and a loss of $0.06 per share. Angi's business seemed to be humming along just fine in the second quarter, which usually means investors would bid up the stock in the days following the results. But that did not occur.
So why did Angi's stock sink in the following trading days? It all comes down to the data the company gave out for July, the month after the end of the second quarter. In July, total revenue growth decelerated to 10% year over year. This is considerably worse than the 27% and 24% year-over-year growth the company experienced in June and May, respectively. With the economy slowing down, it is possible the need for home repair and contractors is decreasing, therefore decreasing the demand for Angi's marketplace.
Source Fool.com
