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IAC/InteractiveCorp. (IAC)
NASDAQ:IAC

IAC/InteractiveCorp. (IAC) AI Stock Analysis

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IAC/InteractiveCorp.

(NASDAQ:IAC)

Rating:59Neutral
Price Target:
$38.00
▲(3.54%Upside)
IAC's strong strategic initiatives and resilient financial structure are significant strengths, contributing positively to the score. However, challenges with profitability, a negative P/E ratio, and neutral technical indicators temper the overall outlook. The company shows potential for growth through strategic actions, but the current financial and market conditions pose notable risks.
Positive Factors
Capital Return
IAC repurchased 5% of their shares outstanding, indicating a strong commitment to the recently reactivated buyback program.
Growth Opportunities
Despite challenges, IAC's strategic interest in leisure, media, and travel sectors suggests potential growth opportunities.
Negative Factors
Consumer Business Performance
Care’s consumer business was softer than anticipated, although offset by a growing enterprise component.
Revenue Decline
2024 revenue and EBITDA are expected to decrease significantly after pulling out Angi.

IAC/InteractiveCorp. (IAC) vs. SPDR S&P 500 ETF (SPY)

IAC/InteractiveCorp. Business Overview & Revenue Model

Company DescriptionIAC/InterActiveCorp operates as a media and internet company worldwide. The company publishes original and engaging digital content in the form of articles, illustrations, and videos and images across entertainment, food, home, beauty, travel, health, family, luxury, and fashion areas; and magazines related to women and lifestyle. It also operates a digital marketplace that connects home service professionals with consumers for repairing, remodeling, cleaning, landscaping, maintenance, and enhancement services under the Angi Ads, Angi Leads, and Angi Services brands. In addition, the company operates websites that offer general search services and information, including Ask.com, a search site with a variety of fresh and contemporary content; Reference.com that offers content across select vertical categories; Consumersearch.com, which offers content designed to simplify the product research process; and Shopping.net, a vertical shopping search site that contains a mix of search services and/or content targeted to various user or segment demographics, as well as offers direct-to-consumer downloadable desktop applications. Further, it offers Care.com, an online destination for families to connect with caregivers for their children, aging parents, pets, and homes; develops and provides subscription mobile applications across the communication, language, weather, business, health, and lifestyle verticals; a technology driven staffing platform for flexible W-2 work under the Bluecrew name; a platform to connect healthcare professionals with job opportunities under the Vivian Health name; The Daily Beast, a website dedicated to news, commentary, culture, and entertainment that publishes original reporting and opinion; and production and producer services for feature films for sale and distribution through theatrical releases and video-on-demand services. The company was formerly known as IAC HOLDINGS, INC. IAC/InterActiveCorp is headquartered in New York, New York.
How the Company Makes MoneyIAC/InteractiveCorp generates revenue predominantly through its diverse range of online businesses. Key revenue streams include digital advertising, subscription fees, and service transactions. For example, Angi Inc. earns from service provider memberships and consumer service fees, Dotdash Meredith monetizes through digital advertising across its various publishing platforms, and Care.com charges subscription and service fees for its caregiving marketplace. Additionally, IAC benefits from strategic acquisitions and investments that enhance its portfolio and revenue-generating capabilities. Revenue is also driven by Vimeo, which offers a range of video services, monetized through subscription plans and enterprise video solutions. IAC's business strategy often involves nurturing and scaling its subsidiaries until they are viable for spin-offs or sales, further contributing to its financial performance.

IAC/InteractiveCorp. Earnings Call Summary

Earnings Call Date:May 05, 2025
(Q1-2025)
|
% Change Since: 3.82%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlights IAC's strategic achievements and share repurchase efforts, but also notes challenges in advertising and macroeconomic uncertainties. The sentiment is cautiously optimistic with ongoing improvements in key areas.
Q1-2025 Updates
Positive Updates
DDM Digital Revenue Growth
Digital revenue for Dotdash Meredith (DDM) grew 7% in the first quarter, with a 46% increase in EBITDA, excluding a one-time lease gain.
Share Repurchases and Authorization Increase
IAC repurchased 4.5 million shares and increased its share repurchase authorization by 10 million shares.
Angi Spin-Off Completion
IAC completed the full spin-off of Angi to shareholders, marking the 10th independent company created by IAC.
The Daily Beast Revenue Surge
The Daily Beast achieved a 72% increase in revenue while also reaching profitability.
Settlement in Match-Separation Litigation
IAC reached an agreement to settle the Match-separation litigation, with a minimal contribution of $200,000 beyond insurance coverage.
Negative Updates
Programmatic Advertising Softness
Programmatic pricing has softened, running flat year-over-year after being up for much of the previous year, indicating market uncertainty.
Care.com Platform Challenges
Care.com has faced challenges with its platform and product experience, with efforts underway to improve matching, messaging, and search functionalities.
Uncertain Macroeconomic Outlook
The macroeconomic environment remains uncertain, with potential impacts from tariffs and consumer confidence issues affecting advertiser brand spend.
Company Guidance
During the IAC First Quarter 2025 Earnings Conference Call, the company reaffirmed its full-year 2025 adjusted EBITDA guidance amidst an uncertain macroeconomic outlook. Key highlights from the call included the completion of Angi's full spin-off to shareholders and a strategic shift in leadership roles, with Joey Levin transitioning from IAC CEO to Angi Executive Chairman. IAC executed a share repurchase program, buying back 4.5 million shares, and increased its share repurchase authorization by 10 million shares. Dotdash Meredith (DDM) reported a 7% growth in digital revenue and a 46% increase in EBITDA, excluding a one-time lease gain, while The Daily Beast achieved a 72% revenue growth and profitability. The company also emphasized its capital allocation strategy, focusing on M&A opportunities and potential strategic divestitures. Additionally, IAC renewed its contract with Google for its Search business and is actively pursuing innovative initiatives, including the incorporation of AI across its platforms, particularly at Vivian, to drive growth and efficiency.

IAC/InteractiveCorp. Financial Statement Overview

Summary
IAC demonstrates mixed financial performance with a strong balance sheet and improving cash flow, but faces profitability challenges and inconsistent revenue growth.
Income Statement
55
Neutral
The income statement reveals fluctuating revenue and profitability. The gross profit margin remains strong, indicating efficient cost management relative to revenue. However, the net profit margin is negative in recent years due to declining net income, highlighting profitability challenges. Revenue growth is inconsistent, with some years experiencing declines, pointing to potential market or operational issues. The negative EBIT and EBITDA margins suggest operating inefficiencies and potential restructuring needs.
Balance Sheet
70
Positive
The balance sheet shows a strong equity base with a healthy equity ratio, reflecting financial stability. The company carries no debt as of the latest report, reducing financial risk. However, past years indicate fluctuating debt levels. The return on equity has been negative in recent periods due to net losses, but the strong stockholders' equity suggests potential for future recovery and growth.
Cash Flow
60
Neutral
Cash flow analysis shows a positive trend in free cash flow growth, particularly in the latest year, contributing to financial flexibility. Operating cash flow to net income ratio is positive, reflecting effective cash generation from operations despite negative net income in some years. However, historical variability in free cash flow suggests potential volatility in cash generation capacity.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.45B3.81B4.37B5.24B3.70B2.76B
Gross Profit
2.45B2.75B3.02B3.31B2.39B2.04B
EBIT
90.72M-4.23M-260.76M-362.02M-17.61M-272.52M
EBITDA
-230.82M-4.23M1.10B-906.45M949.66M486.01M
Net Income Common Stockholders
-801.73M-539.90M265.94M-1.20B597.55M269.73M
Balance SheetCash, Cash Equivalents and Short-Term Investments
910.34M1.80B1.45B1.66B2.14B3.59B
Total Assets
7.16B9.55B10.37B10.39B12.61B9.16B
Total Debt
2.35B1.97B2.49B2.05B2.08B712.28M
Net Debt
3.26B168.68M1.19B632.37M-42.49M-2.65B
Total Liabilities
4.38B3.24B3.58B3.79B4.84B1.78B
Stockholders Equity
2.75B5.58B6.08B5.93B7.18B6.60B
Cash FlowFree Cash Flow
236.08M289.01M48.16M-222.54M46.74M93.86M
Operating Cash Flow
290.53M354.52M189.53M-82.79M136.95M154.58M
Investing Cash Flow
122.83M276.82M-87.47M-494.81M-2.90B-1.87B
Financing Cash Flow
-103.13M-113.08M-223.01M-112.65M1.41B4.35B

IAC/InteractiveCorp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price36.70
Price Trends
50DMA
35.98
Positive
100DMA
36.42
Positive
200DMA
38.52
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
51.94
Neutral
STOCH
62.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IAC, the sentiment is Positive. The current price of 36.7 is below the 20-day moving average (MA) of 37.00, above the 50-day MA of 35.98, and below the 200-day MA of 38.52, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.94 is Neutral, neither overbought nor oversold. The STOCH value of 62.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IAC.

IAC/InteractiveCorp. Risk Analysis

IAC/InteractiveCorp. disclosed 32 risk factors in its most recent earnings report. IAC/InteractiveCorp. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

IAC/InteractiveCorp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$1.70B25.759.18%4.11%26.71%-23.67%
78
Outperform
$2.36B17.8119.74%5.93%29.17%
70
Outperform
$3.16B89.847.98%0.63%15.34%
68
Neutral
$791.30M15.805.05%-16.79%
68
Neutral
$7.81B15.71-865.98%1.19%0.40%-11.05%
61
Neutral
$14.60B5.88-4.32%3.68%2.75%-30.55%
IAIAC
59
Neutral
$2.87B-15.07%-18.11%-516.37%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IAC
IAC/InteractiveCorp.
36.70
-3.44
-8.57%
ANGI
Angi
16.63
-4.07
-19.66%
YELP
Yelp
37.02
0.00
0.00%
CARG
CarGurus
32.02
5.84
22.31%
OPRA
Opera
18.91
4.42
30.50%
MTCH
Match Group
31.93
0.59
1.88%

IAC/InteractiveCorp. Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
IAC Refinances Loans and Establishes New Credit Facility
Neutral
May 19, 2025

On May 14, 2025, Dotdash Meredith Inc., a subsidiary of IAC, refinanced its existing term A loans with $350 million in new term A loans and established a new $150 million revolving credit facility. These financial adjustments aim to optimize the company’s debt structure, with changes in interest rates, maturity, and amortization terms, potentially impacting the company’s financial flexibility and operational strategy.

The most recent analyst rating on (IAC) stock is a Buy with a $70.00 price target. To see the full list of analyst forecasts on IAC/InteractiveCorp. stock, see the IAC Stock Forecast page.

Financial Disclosures
IAC/InteractiveCorp Reports Q1 2025 Revenue Increase
Neutral
May 5, 2025

Dotdash Meredith Inc., a subsidiary of IAC/InteractiveCorp, released its unaudited consolidated financial statements for the quarter ending March 31, 2025. The company reported a slight increase in revenue to $393.1 million from $390.5 million in the same period the previous year. However, total assets decreased from $3.17 billion at the end of 2024 to $3.03 billion by March 2025, indicating potential challenges in asset management or operational efficiency.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
IAC Announces New Share Repurchase Authorization
Positive
May 5, 2025

In the first quarter of 2025, IAC completed the spin-off of Angi Inc., repurchased 4.5 million shares, and announced a new 10 million share repurchase authorization. Despite a 9% decrease in total revenue compared to Q1 2024, IAC reported a significant increase in operating income and adjusted EBITDA, driven by strong performance in its largest business, Dotdash Meredith. The company remains optimistic about capital allocation opportunities and continues to grow its digital revenue amidst industry challenges.

Executive/Board ChangesBusiness Operations and Strategy
IAC Nominates Tor R. Braham to Board
Positive
Apr 29, 2025

On April 29, 2025, IAC announced the nomination of Tor R. Braham to its Board of Directors, following constructive engagement with shareholder Arkhouse Management Co. LP. Braham’s expertise in technology and capital markets is expected to enhance IAC’s strategic execution. The nomination is part of broader corporate governance enhancements, including a director resignation policy for nominees receiving less than a majority of votes in uncontested elections.

M&A TransactionsBusiness Operations and Strategy
IAC Completes Spin-Off of Angi Inc.
Neutral
Apr 8, 2025

On April 8, 2025, IAC Inc. announced the completion of the spin-off of Angi Inc., including Total Home Roofing, LLC, which was sold on November 1, 2023. This move, finalized on March 31, 2025, was executed through a special dividend distribution of Angi’s shares to IAC’s stockholders, resulting in Angi becoming an independent public company. Consequently, IAC has reclassified Angi’s operations as discontinued in its financial statements, reflecting this strategic shift in its business structure.

Executive/Board ChangesBusiness Operations and Strategy
IAC/InteractiveCorp. Completes Spin-Off of Angi Inc.
Positive
Apr 1, 2025

On March 31, 2025, IAC Inc. completed the spin-off of Angi Inc., making Angi an independent public company. This strategic move allows Angi to focus on its growth objectives with a simplified equity structure, while IAC shifts its focus to other growth opportunities. Joey Levin transitioned from IAC CEO to Executive Chairman of Angi, working alongside Angi’s CEO Jeff Kip to drive the company’s strategic goals. The spin-off is expected to enhance Angi’s ability to pursue mergers, acquisitions, and talent acquisition, while IAC continues to develop its existing businesses and explore new opportunities.

M&A TransactionsBusiness Operations and Strategy
IAC/InteractiveCorp. Announces Spin-Off of Angi Inc.
Neutral
Mar 28, 2025

On March 7, 2025, IAC’s Board of Directors approved the spin-off of Angi Inc., distributing all Angi shares held by IAC to its common stockholders. This strategic move, set to be completed on March 31, 2025, will result in IAC no longer owning any shares of Angi, potentially impacting its market positioning by focusing on its remaining digital and online services portfolio.

Stock BuybackBusiness Operations and Strategy
IAC Expands Share Repurchase Program by 10 Million
Positive
Mar 17, 2025

On March 16, 2025, IAC Inc. announced an increase in its share repurchase program, allowing the company to repurchase up to an additional 10 million shares. This strategic move provides IAC with the flexibility to manage its capital needs and respond to market conditions, potentially enhancing shareholder value and strengthening its market position.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.