ANGI - Why Angi Stock Plunged More Than 21% in Morning Trading Today
Shares of Angi (NASDAQ: ANGI) , which provides a digital platform that connects home improvement professionals with potential customers, fell sharply on Wednesday, down by more than 21% at one point during morning trading. As of 12:15 p.m. ET, the stock was down by 19.5%. The drop was precipitated by the company's fourth-quarter earnings report, which hit the market after the close on Tuesday. But it requires a little bit of digging to understand why investors were so displeased.
On the top line, Angi reported a year-over-year gain of 16% to roughly $416 million in the quarter. It was, as management was pleased to highlight, the company's fifth consecutive quarter of double-digit percentage revenue growth. The big driver was Angi's services division, which increased sales by a massive 116% year over year. But that needs a bit more explanation -- as management notes, the acquisition of a roofing business was a material driver of that increase. And the services division only made up 15% of the top line in 2020, so it was growing from a relatively small base. (For reference, it now generates 27% of total revenues.) Meanwhile, sales in the company's European division were up by just 1%, with its advertising business seeing a sales decline of 2%. So the top-line growth wasn't really as impressive as it might appear once you look past the headline figures.
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Why Angi Stock Plunged More Than 21% in Morning Trading Today