Summary
- ANGI’s fundamentals have suffered due to underperforming growth initiatives.
- The new management team aims to improve profitability, but there are concerns about ANGI’s poor execution track record and a potential macro slowdown in the home repair industry.
- Lack of key catalysts and overvaluation lead to a neutral rating, with higher risk than reward on the stock.
Angi (NASDAQ:ANGI) is an online marketplace that connects homeowners with local service professionals. It offers a platform where homeowners can find and hire professionals for various services such as home improvement, repairs, cleaning, and maintenance.
The business has been through ups and downs since my previous coverage in 2020, where the stock traded at ~$7 per share and I suggested that the business would be facing significant competition from well-funded tech giants like Facebook (META) and Amazon (AMZN).
The stock reached above $16/share in early 2021, when Oisin Hanrahan, who earlier co-founded Handy, a home cleaning service startup acquired by ANGI, took over as CEO. However, the core business performance has been underwhelming since then, while many new initiatives failed to take off successfully, negatively impacting the bottom line.
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