tiprankstipranks
Trending News
More News >
IAC/InteractiveCorp. (IAC)
NASDAQ:IAC

IAC/InteractiveCorp. (IAC) AI Stock Analysis

Compare
789 Followers

Top Page

IA

IAC/InteractiveCorp.

(NASDAQ:IAC)

Rating:68Neutral
Price Target:
$45.00
▲(12.67%Upside)
IAC's stock score is primarily supported by strong technical indicators and positive recent corporate events. Financial performance presents mixed signals, with a strong balance sheet but profitability challenges. The stock's valuation is a notable downside, with a negative P/E ratio. Earnings call insights provide a cautiously optimistic outlook, highlighting strategic achievements and growth in digital revenue despite macroeconomic uncertainties.
Positive Factors
Cash Position
IAC has approximately $900M of cash, no parent-level debt, and is free cash flow positive.
Growth Opportunities
Despite challenges, IAC's strategic interest in leisure, media, and travel sectors suggests potential growth opportunities.
Share Buyback
IAC has repurchased 4.5 million shares and has 9.2 million remaining under authorization, indicating a focus on capital return.
Negative Factors
Digital Advertising Industry
Despite not seeing any major issues at DDM, the broader digital advertising industry is showing cracks in the armor, so estimates may fluctuate going forward.
Revenue Decline
2024 revenue and EBITDA are expected to decrease significantly after pulling out Angi.
Session Declines
There are concerns about core session declines at DDM despite a double-digit increase in session monetization, raising questions about room for traffic growth.

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

IAC/InteractiveCorp. Business Overview & Revenue Model

Company DescriptionIAC/InteractiveCorp (IAC) is a diversified media and internet company with a portfolio spanning across various sectors such as digital marketplaces, publishing, and entertainment. The company is known for its ownership and operation of a multitude of popular online brands and services, including Angi Inc., Dotdash Meredith, Care.com, and Vimeo, among others. IAC focuses on creating innovative consumer-facing digital content and services that cater to a wide range of audiences globally.
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: 12.98%|
Next Earnings Date:Aug 04, 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/InteractiveCorp shows mixed financial performance. The income statement indicates profitability challenges with negative net profit margins and fluctuating revenue. However, the balance sheet is strong with a solid equity position and no current debt. The cash flow analysis reveals a positive trend in free cash flow growth, although historical variability suggests potential risks. Overall, the company has a strong financial foundation but struggles with consistent profitability and 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.45B3.81B4.37B5.24B3.70B2.76B
Gross Profit2.45B2.75B3.02B3.31B2.39B2.04B
EBITDA-230.82M-4.23M1.10B-906.45M949.66M486.01M
Net Income-801.73M-539.90M265.94M-1.20B597.55M269.73M
Balance Sheet
Total Assets7.19B9.55B10.37B10.39B12.61B9.16B
Cash, Cash Equivalents and Short-Term Investments1.16B1.80B1.45B1.66B2.14B3.59B
Total Debt0.001.97B2.49B2.05B2.08B712.28M
Total Liabilities2.47B3.24B3.58B3.79B4.84B1.78B
Stockholders Equity4.71B5.58B6.08B5.93B7.18B6.60B
Cash Flow
Free Cash Flow236.08M289.01M48.16M-222.54M46.74M93.86M
Operating Cash Flow290.53M354.52M189.53M-82.79M136.95M154.58M
Investing Cash Flow122.83M276.82M-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 Price39.94
Price Trends
50DMA
37.07
Positive
100DMA
36.99
Positive
200DMA
38.01
Positive
Market Momentum
MACD
0.89
Negative
RSI
70.11
Negative
STOCH
90.93
Negative
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 39.94 is above the 20-day moving average (MA) of 37.82, above the 50-day MA of 37.07, and above the 200-day MA of 38.01, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 70.11 is Negative, neither overbought nor oversold. The STOCH value of 90.93 is Negative, 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$1.71B25.979.18%4.00%26.71%-23.67%
71
Outperform
$2.21B16.6319.74%5.93%29.17%
69
Neutral
$790.82M16.155.05%-16.79%
IAIAC
68
Neutral
$3.11B-15.07%-18.11%-516.37%
67
Neutral
$3.44B97.317.98%0.63%15.34%
64
Neutral
$7.96B16.00-865.98%2.34%0.40%-11.05%
62
Neutral
$40.76B-1.15-12.05%3.90%2.03%-69.70%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IAC
IAC/InteractiveCorp.
41.67
1.43
3.55%
ANGI
Angi
16.85
-2.55
-13.14%
YELP
Yelp
35.11
-0.66
-1.85%
CARG
CarGurus
34.68
9.19
36.05%
OPRA
Opera
19.71
7.12
56.55%
MTCH
Match Group
33.61
2.62
8.45%

IAC/InteractiveCorp. Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
IAC/InteractiveCorp. Concludes Annual Stockholders Meeting
Neutral
Jun 23, 2025

On June 18, 2025, IAC Inc. held its Annual Meeting of Stockholders, where several key proposals were voted on. The stockholders elected twelve board members, approved a non-binding advisory vote on the company’s 2024 executive compensation, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the 2025 fiscal year. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

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.

Private Placements and FinancingBusiness Operations and Strategy
IAC/InteractiveCorp’s Dotdash Meredith Completes $400M Note Offering
Positive
Jun 17, 2025

On June 16, 2025, Dotdash Meredith Inc., a subsidiary of IAC/InteractiveCorp, completed a private offering of $400 million in Senior Secured Notes due 2032. These notes, which bear a 7.625% interest rate, were issued to qualified institutional buyers in the U.S. and non-U.S. investors, with proceeds used to repay existing debt and cover related expenses. Concurrently, DDM entered into an amended credit agreement, establishing a new $700 million term loan B facility to replace a previous $1.18 billion facility. This strategic financial restructuring aims to optimize DDM’s capital structure and enhance its financial flexibility, impacting its operations and potentially benefiting stakeholders.

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.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 11, 2025