Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Angie's List (NAS: ANGI) popped today by as much as 12%, in part because rival Yelp (NAS: YELP) oddly didn't sell off upon its IPO lockup expiration, but also because of bullish analyst comments.
So what: Most watchers, myself included, expected Yelp to drop like a rock upon the expiration of its lockup restrictions. That didn't pan out, and shares have skyrocketed today. Some of that optimism may be helping boost Angie's List as well. Oppenheimer analyst Jason Helfstein also upgraded the stock to "outperform," up from "perform," although he reduced his price target.
Now what: The previous price target was $17 and likely outdated, considering the company has fallen significantly in recent trading, and the new $15 price target still represents substantial upside from current prices. Helfstein believes Angie's List's shares should become less volatile now that its own lockup expiration is also in the rearview mirror. He also believes the company can grow EBITDA even if consumer marketing shows weakness, and also that shares are cheap relative to some of its peers.
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The article Why Angie's List Shares Popped originally appeared on Fool.com.
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