Wall Street is serving up its biggest buffet of initial public offerings in six months — but the menu isn’t especially appetizing.
Among nine issues slated to begin trading Wednesday is Angie’s List, a review site for local businesses. The company makes money by selling memberships and targeted advertising and says its reviews are more reliable than those offered on free sites: “Service providers can’t pay to be rated on Angie’s List, nor are they allowed to rate themselves.”
And if there’s one thing that will stop unscrupulous contractors from finding ways to unfairly gain customer trust, it’s being told that it’s not allowed.
Angie’s List boasts fast growth in memberships and revenues, but not nearly as fast as its growth in marketing expenses. In the first six months of 2011 the company posted a net loss of $25.8 million, versus a loss of $10.8 million a year earlier