The stock was up 19% for the week on that news as of Thursday afternoon.
The major catalyst for the week's gains was an update showing Angi's monthly revenue grew at its fastest pace since August, a promising sign that momentum is building as its 21% growth in August comes on top of 12% growth in August 2020.
Angi's marketplace, its biggest business segment, posted top-line growth of 24%, and revenue from Angi Services -- the fast-growing, pre-paid product that automatically books jobs for homeowners -- saw its sales jump 165% following 170% growth in July, indicating a strong performance for the third quarter as a whole.
Though management did not provide any commentary on the performance, the results seem to indicate that its turnaround efforts are beginning to pay off. In March, the company launched a rebrand, changing the corporate name and the brand name Angie's List to Angi, while HomeAdvisor became "HomeAdvisor, powered by Angi."
That decision came shortly after Oisin Hanrahan was named as Angi's new CEO. Hanrahan is the founder of Handy, the fixed-price home-services platform that was acquired by Angi in 2018. Hanrahan is betting that new products like Angi Services and Angi Key, a $30 annual membership program that offers customers 20% discounts on pre-priced jobs, among other benefits, can help drive its turnaround.
The August metrics came out on Sept. 13, and the stock jumped 9% the following session, but Angi also gained again on Sept. 16, climbing 8% on no news. That could signal that the stock is ripe for a larger breakout especially if the company is gaining traction in its turnaround.
Investors won't get a complete earnings report until November, and September metrics will be available next month. But the stock could have more room to run as it has historically been volatile, and 13% of the stock is sold short, indicating potential for a short squeeze .