What Happened?

Shares of home services online marketplace ANGI (NASDAQ: ANGI) jumped 9% in the afternoon session after IAC's board approved a plan to fully spin off its stake in Angi. As part of the move, Joey Levin will step down as IAC CEO to become Executive Chairman of Angi. The spin-off is expected to give IAC shareholders direct ownership of Angi, fully separating the two companies. It will also eliminate Angi's dual-class structure, streamlining its governance. This simplified structure is expected to support Angi's growth by providing more flexibility to make acquisitions, raise capital, and attract talent.

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What The Market Is Telling Us

Angi’s shares are extremely volatile and have had 30 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 biggest move we wrote about over the last year was 5 months ago when the stock gained 28.8% on the news that the company reported strong second quarter results. Angi beat analysts' revenue and service request expectations this quarter, but we note that sales growth was quite weak, and requests declined. Overall, this was a decent quarter for Angi.

Angi is up 4.3% since the beginning of the year, but at $1.69 per share, it is still trading 43.7% below its 52-week high of $3 from February 2024. Investors who bought $1,000 worth of Angi’s shares 5 years ago would now be looking at an investment worth $188.30.

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