Out Fox The $treet

With Amazon.com ( NASDAQ: AMZN     ) expected to enter the local services space this year, it suggests taking the time to recheck the prospects of Angie's List ( NASDAQ: ANGI     ) if Amazon.com sees the space as valuable. Angie's List went public back around the same time as Yelp ( NYSE: YELP ) , but the results have been dramatically different for the related local service stocks. From the beginning, the free-to-join platform of Yelp scaled quicker and attracted more users, but in the end, Angie's List had the higher-quality paid and verified members. In that way, it's the ultimate tortoise versus the hare scenario. Yelp has quickly amassed 132 million monthly users, and Angie's List is stuck with only 2.6 million paid members. Will the paid members eventually have more value? Read the full article here . Disclosure: Long AAPL and YELP. Please review the disclaimer page for more details. 

One thing for sure, the stock market is not very forgiving of growth stocks that miss earnings estimates, no matter the amount. In the case of Angie's List ( NASDAQ: ANGI     ) , the stock continued a month-long collapse after a third-quarter earnings miss. The company that offers paid members access to reviews of local service professionals generated revenue growth of 56%, yet it wasn't enough to meet analyst estimates. The company remains under extreme pressure to justify how paid memberships outweigh the free reviews on sites like Yelp ( NYSE: YELP     ) . The difference in stock valuations signals that the market thinks the free versions with larger user bases are more valuable. However, investors need to remember that the market tends to overreact and a reversion to the mean could take place in 2014. Remember that Yelp spent most of 2012 in the doghouse trying to convince the stock market that user reviews were a valuable service. Read the f...

In the last month, the price for shares of Angie's List ( NASDAQ: ANGI     ) has absolutely collapsed. The company offers paid subscribers access to reviews of local service professionals and is under extreme pressure to show that paid memberships outweigh the free reviews on sites such as Yelp ( NYSE: YELP     ) . The user review sites both came public around the start of 2012 with valuations in the general $1 billion range, but after the recent weakness in Angie's List's price the stocks have vast discrepancies making them worth another review. The recent declines in Angie's price should also be a major warning that Yelp investors should never get too comfortable. The fundamental case for either stock can shift quickly. Read the full article here . Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Though Angie’s List (NASDAQ: ANGI ) continues to produce extremely fast revenue growth, the market was disappointed with the forward guidance for Q3. The provider of verified user reviews showed a large increase in operating leverage though the level of losses might continue to scare off investors. Angie’s List's valuation continues to make an interesting debate between it and fellow consumer review site Yelp (NYSE: YELP ) . Both stocks more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

For the second consecutive earnings report the stock of Angie’s List (NASDAQ: ANGI ) has soared over 30%. Is this due to irrational exuberance or a change of fundamentals at the company? Angie’s List provides a web service that allows paid users the opportunity to find service providers recommended by the community. The company now has nearly 2 million users and spends a large percentage of revenue on sales more » Disclosure: No position mentioned. Please review the disclaimer page for more details. 

When listening to the Q112 earnings call this week for Pandora Media (P) , it really struck me that this company was mostly built on the old business model. Sure, companies such as Pandora, Angie's List (ANGI) , and Yelp (YELP) have new relevant services, but none of them have veered much from the labor intensive model of hiring local sales reps to find advertisers. The Pandora earnings call had one very shocking number. The company had hired 79% more sales reps than last year. Sure, the company told a great sales story of how a local car dealership found advertising on its services more compelling than terrestrial music channels since the ads could be more targeted. When, though, will these companies attract advertisers without a sales rep and large marketing budgets? Developing a business model attracting a bunch of costly users is nice, but how about attracting paying subscribers? Sure Pandora may attract millions of users, but the real issue for media companies, including even...