What Happened?
Shares of home services online marketplace ANGI (NASDAQ: ANGI)
fell 24.1% in the morning session after the company posted a jarring second-quarter earnings report that missed both revenue and profit expectations.
The company reported revenue of $248 million, missing analyst estimates by over $7 million and marking a 10.9% decline from the previous year. On the bottom line, the results were even worse, with a GAAP loss of $5.70 per share falling significantly short of the consensus estimate for a $0.11 profit. While Angi did manage to beat expectations on Adjusted EBITDA, a measure of core profitability, this was not enough to offset investor concerns about the steep revenue decline and the substantial bottom-line loss.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Angi? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Angi’s shares are extremely volatile and have had 37 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 28 days ago when the stock dropped 6.8% on the news that President Trump declared the Iran ceasefire "over" and vowed to strike again, driving oil higher and bond yields up in a risk-off rotation. Consumer internet companies (e-commerce, digital advertising, and platform businesses) are long-duration growth stocks whose valuations rest heavily on cash flows expected years into the future.
When crude spikes and inflation fears push government bond yields higher, as they did during the session, the discount rate applied to those distant earnings rises and high-multiple shares reprice lower.
The business models are also cyclically exposed: advertising budgets and online discretionary purchases soften when consumers face higher energy bills and companies turn cautious.
Angi is down 63.5% since the beginning of the year, and at $4.62 per share, it is trading 75.6% below its 52-week high of $18.90 from August 2025. Investors who bought $1,000 worth of Angi’s shares 5 years ago would now be looking at only $39.28.
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