Angi's Business Model Shift May Not Change Investor Skepticism Toward Internet Marketplaces, RBC Says

MT Newswires Live
07/10

Angi's (ANGI) strategy to transition its business model and expand from lead generation into software for service providers "wouldn't solve investors general distaste for most internet marketplaces," RBC Capital Markets said in a note Thursday.

After hosting a call with Angi CEO Jeff Kip, RBC said management aims to position Angi around artificial intelligence and agentic tools to build an SP revenue management platform that complements its existing ad business that was not economically justifiable due to the software engineering costs.

RBC lowered its Q2 revenue estimate for Angi to $258.7 million from $264.1 million. The company raised its Q3 forecast to $253.2 million from $251.9 million and its Q4 estimate to $232.5 million from $228.4 million.

RBC maintained its Sector Perform rating on Angi and a $5 price target.

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