Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, local services review site Angie's List
With that in mind, let's take a closer look at Angie's List and see what CAPS investors are saying about the stock right now.
Angie's List facts
|Headquarters (founded)||Indianapolis (1995)|
|Market Cap||$862.3 million|
|Industry||Internet software and services|
|Trailing-12-Month Revenue||$103.5 million|
|Management||Co-founder/CEO William Oesterle
Co-founder/Chief Marketing Officer Angela Hicks
|Trailing-12-Month Operating Margin||(46.8%)|
|Cash/Debt||$84.6 million / $14.8 million|
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 94% of the 272 members who have rated Angie's List believe the stock will underperform the S&P 500 going forward.
There is absolutely no moat here. Going forward, as the consumer gets used to paying for fewer and fewer online (and offline) computer-based services (think cloud computing, open-source software, almost any service an individual would use Google for, etc.), people are going to be less and less willing to PAY to see REVIEWS. ...
On top of that, this company has a real problem in that it stands a real chance of BEING HURT as it becomes MORE SUCCESSFUL (i.e. more widely adopted). ... At a certain point, in a local market, there is just too much competition for premier screen positions on the site. Either that, or, if you choose to pay (even more!) to be "highlighted" ... there is a very real possibility that this won't be worth it for you in terms of the extra business you bring in as a result. Any company that has a ceiling like this is scary as hell from an investment point of view.
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