Stock Story -
What Happened: Shares of home services online marketplace ANGI (NASDAQ: NASDAQ:ANGI) jumped 28.8% in the morning session after the company reported second quarter earnings results. Angi beat analysts' revenue and service request expectations this quarter, but we note that sales growth was quite weak, and requests declined. Overall, this was a decent quarter for Angi.
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What is the market telling us: Angi's shares are very volatile and over the last year have had 33 moves greater than 5%. But moves this big are very rare even for Angi and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 6 months ago, when the stock gained 23.1% on the news that the company reported fourth-quarter results with adjusted EBITDA significantly beating Wall Street's estimates ($41.4 million vs. estimates of $28.6 million). Furthermore, its full-year 2024 EBITDA guidance topped Wall Street's projections. Also, the company was cash flow positive for the full year (2023), an improvement on the cash burn recorded in the previous year.
On the other hand, revenue missed during the quarter. Overall, it was a decent quarter for the company, and its improved profitability is helping the stock.
Angi is up 5.9% since the beginning of the year, but at $2.54 per share it is still trading 34.4% below its 52-week high of $3.87 from August 2023. Investors who bought $1,000 worth of Angi's shares 5 years ago would now be looking at an investment worth $201.66.
