What happened
Shares of Angi (ANGI -1.44%) rose a quick 12% as trading got underway today. About two hours into the day, the stock was still holding on to most of the advance, sitting with a 9% price gain. The news driving this move came out this morning and, if things work out, it could be big.
So what
Before trading began today, Angi announced that it had created a partnership with giant retailer Walmart (WMT 1.32%). The plan is to have Angi's pros "available" in nearly 4,000 of the retailer's stores across all 50 U.S. states, giving it a very real physical presence. The services on offer will include 150 common home projects, including things like painting, plumbing, and electrical work. However, it will also involve less intensive tasks as well, like mounting a television to a wall ($79) or assembling furniture ($49).
Image source: Getty Images.
If Walmart customers embrace the Angi service, this could be a very big deal for the company. Notably, Walmart is Angi's first retail integration, which kind of makes it a go big or go home moment in many ways. Clearly, investors seem to think that it will be a pretty worthwhile opportunity, given the stock price advance on the news.
Now what
To be fair, this is just a trial balloon, and it could deflate if Walmart customers aren't inclined to hire a professional through Angi. Given the low-cost nature of Walmart's stores, it is entirely possible that these particular customers aren't the ones that will be interested in such services. If things don't go smoothly here, there's a possibility that the entire idea of retailer partnerships could be scrapped, even if other, smaller, partnerships might end up being a better fit. All in, this is exciting news, but it needs to be watched carefully to see how well it works for Angi.
