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Why Angi (ANGI) Stock Is Falling Today

ANGI Cover Image

What Happened?

Shares of home services online marketplace ANGI (NASDAQ: ANGI) fell 4.4% in the afternoon session after a key competitor in the home services marketplace, Urban Company, launched its Initial Public Offering (IPO). 

Urban Company, which connects customers with a wide range of service providers, began its IPO on Wednesday, September 10. The emergence of a new publicly traded competitor in the same space can create pressure on existing players like Angi. Investors may be concerned about increased competition for both market share and investment capital, as Urban Company is being described as potentially the only listed company of its specific type. This new entry into the public markets appears to be prompting a re-evaluation of Angi's competitive position.

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, it’s free.

What Is The Market Telling Us

Angi’s shares are very volatile and have had 25 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 20 days ago when the stock dropped 3.1% on the news that markets continued to decline, as investors grew cautious ahead of a key speech by Federal Reserve Chair Jerome Powell. The move came as U.S. equity markets recorded a fifth consecutive day of losses for major indexes like the S&P 500, with technology stocks experiencing the largest declines. Investors have grown wary that the sharp rally in the tech sector since April may have advanced too far. 

Angi is up 6.8% since the beginning of the year, but at $17.24 per share, it is still trading 40.2% below its 52-week high of $28.80 from September 2024. Investors who bought $1,000 worth of Angi’s shares 5 years ago would now be looking at an investment worth $137.08.

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