What Happened:
Shares of home services online marketplace ANGI (NASDAQ: ANGI) jumped 8.43% in the after-market session after the company reported first quarter results that exceeded analysts' revenue, adjusted EBITDA, and earnings per share (EPS) estimates. The company generated positive free cash flow after several quarters of cash burn. However, there was a decline in users and the revenue growth was somewhat weak. For the full year, the company guided adj. EBITDA ahead of Consensus. While it wasn't a perfect quarter, it was certainly a good one, with the improved profit outlook a major positive for the market's perception of the business.
What is the market telling us:
Angi's shares are quite volatile and over the last year have had 67 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Angi is up 18.5% since the beginning of the year, but at $2.95 per share it is still trading 52% below its 52-week high of $6.14 from August 2022. Investors who bought $1,000 worth of Angi's shares 5 years ago would now be looking at an investment worth $207.33.
Is now the time to buy Angi? Access our full analysis of the earnings results here, it's free.