What Happened?
Shares of home services online marketplace ANGI (NASDAQ: ANGI) jumped 16.3% in the afternoon session after the company reported second-quarter results that surpassed Wall Street's revenue expectations. Despite a year-over-year sales decline of 11.7%, the company's strategic pivot towards higher-quality transactions captured investor attention. This new focus, while shedding over $400 million in revenue, resulted in improved operational efficiencies. The shift positively impacted important financial health indicators like EBITDA and free cash flow, which bolstered investor confidence in the company's long-term strategy.
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What Is The Market Telling Us
Angi’s shares are very volatile and have had 26 moves greater than 5% over the last year. But moves this big are rare even for Angi and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 26 days ago when the stock dropped 4% on the news that the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada. This move is far more than a typical trade dispute; it targets the United States' largest and most deeply integrated trading partner. Canada is not merely a neighbor but a critical component of North American supply chains, particularly in sectors like automotive, energy, and critical minerals. This move has sparked concerns about potential retaliatory actions and a wider impact on the North American economy, leading to a risk-off sentiment among investors. The S&P 500, Dow Jones Industrial Average, and Nasdaq all opened lower, pulling back from recent record highs and heading for their first weekly loss in three weeks.
Angi is up 11.5% since the beginning of the year, but at $18.06 per share, it is still trading 37.3% 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 $114.31.
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