Angie’s list (NASDAQ:ANGI), the online review site, saw its stock price tumble by over 15% in regular trading on Oct 3rd, 2013. The company had announced a 75% cut in its subscription fees in a bid to boost its member volumes. The shares fell to $17 levels from $21 close on Oct 2, following the announcement of the sale. However the company seems to have closed the sale as reported by The Wall Street Journal. This follows last week’s exit of CTO Manu Thapar.
We at Amigobulls haven’t been too optimistic about the stock for a long time due to two main reasons. The company does not have a strong business model to support its valuation in excess of $1 billion. The huge insider selling activity at the company has not been indicative of bright expectations from the stock. We had previously reported the regular insider selling coinciding with the earlier peaking of the stock price which wasn't a very comforting fact to investors of Angie’s.
We continue our bearish outlook on the stock even after the recent crash in the price.
To see Angie’s latest stock price movement, click here (NASDAQ:ANGI)