Why Angie's List Is Poised to Pull Back

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, local services review site Angie's List has received an alarming one-star ranking.

With that in mind, let's take a closer look at Angie's List, and see what CAPS investors are saying about the stock right now.

Angie's Listfacts

 

 

Headquarters (founded)

Indianapolis (1995)

Market Cap

$1.5 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$176.9 million

Management

Co-Founder/CEO William Oesterle

Co-Founder/Chief Marketing Officer Angela Bowman

Trailing-12-Month Return on Capital

(89.3%)

Cash/Debt

$62.9 million / $14.9 million

Competitors


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 93% of the 373 members who have rated Angie's List believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star zzlangerhans, succinctly summed up the bear case for our ommunity:

[Angie's List] was a great idea initially, to charge consumers reviews of local contractors and such. But lately, as competitors have started to pop up, it has become somewhat of an extortion scheme of the unsuspecting. Expect this company to continue underperforming.

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The article Why Angie's List Is Poised to Pull Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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