Angi Inc. Overview
Angi Inc. (NASDAQ: ANGI) marks its place as the first and smallest name on our list of spin-off companies in 2025. Previously part of IAC Inc. (NASDAQ:IAC), a major player in the media and internet space, Angi emerged as a standalone entity on March 31, 2025. This transition happened through a special dividend, distributing all common stock of Angi owned by IAC to holders of IAC common and Class B common stock. Prior to the spin-off, IAC maintained a controlling interest in Angi, holding 85.3% of its economic rights and an impressive 98.3% of its voting rights as of December 31, 2024.
Analyst Ratings and Stock Performance
In a recent update, RBC Capital Markets analyst Brad Erickson emphasized caution, reiterating a Hold rating on Angi Inc. with a price target of $18.00 as of December 17. Due to its relatively small stature, Angi hasn’t attracted much analyst attention lately, especially after reporting disappointing earnings in early November. As of December 26, the consensus among analysts remained cautious: only 40% of those covering the stock assigned a Buy rating, while the rest deemed it a Hold. There exists a notable gap between high ($27) and low ($14) price targets, with a median target of $18 suggesting a potential upside of nearly 42%.
Market Volatility
Reflecting the broader cautious sentiment, Angi’s share price has experienced significant volatility. Since its spin-off, the stock has declined around 18% and is nearly 24% down year to date. Investors and analysts alike are watching closely as the company navigates this challenging market landscape.
Operational Developments
In a bid to strengthen its market position, Angi has consolidated its five international business platforms into a single entity. The company is also focused on integrating this platform with three of its U.S. platforms to create a unified global platform, with an ambitious target completion date set for Q1 2027. Additionally, Angi is ramping up its software development efforts to launch a modern, AI-first platform that can enhance user experience and operational efficiency.
Core Business Model
Operating in the vibrant home services sector, Angi Inc. connects consumers with professionals across an extensive array of over 500 categories, ranging from home repairs and renovations to cleaning services and landscaping. This diversified approach enables Angi to cater to a wide market, tapping into various consumer needs and preferences.
Investment Considerations
While the potential of Angi Inc. as an investment is acknowledged, some analysts express that other stocks in the AI sector may present more considerable upside potential, while also carrying less downside risk. For those exploring attractive investment opportunities, a report on what some describe as the best short-term AI stock could be worth checking out, especially given its potential to benefit from market trends.
Explore More
For additional insights, consider reading about Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy and discover the 11 Best Stocks You’ll Wish You Bought Sooner.
Disclosure
This article was originally published at Insider Monkey.