What Happened?
Shares of home services online marketplace ANGI (NASDAQ: ANGI) fell 7.3% in the morning session after the company reported third-quarter financial results that missed Wall Street's expectations for both revenue and earnings. The company posted revenue of $265.6 million, a 10.5% decline year on year, falling short of analyst forecasts. Earnings per share came in at $0.23, which was also below consensus estimates and represented a steep drop from the $0.70 per share reported a year ago. While Angi did report an increase in its operating margin, investors appeared to focus more on the declining sales and missed profit targets, which overshadowed the company's cost-cutting efforts.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Angi? Access our full analysis report here.
What Is The Market Telling Us
Angi’s shares are very volatile and have had 27 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 23 days ago when the stock gained 4% on the news that investors' concerns about US-China trade tensions were eased by President Trump's more conciliatory tone over the weekend. Following a sharp market drop the previous trading day driven by trade conflict escalation, Wall Street's main indexes opened significantly higher. The Dow Jones Industrial Average, S&P 500, and Nasdaq all saw gains of over 1%. The rebound was attributed to comments made by the President on social media, where he stated the "China situation will all be fine" and that the U.S. "wants to help China, not hurt it!!!" This shift in rhetoric prompted a return to risk assets, as traders brushed aside the previous week's fears. The rally ahead of the upcoming earnings season suggests that the "buy-the-dip" mentality remains strong among investors whenever trade jitters subside.
Angi is down 27.1% since the beginning of the year, and at $11.80 per share, it is trading 54.9% below its 52-week high of $26.20 from November 2024. Investors who bought $1,000 worth of Angi’s shares 5 years ago would now be looking at an investment worth $103.09.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.
