IAC/InteractiveCorp. (IAC) AI Stock Analysis

• Market Cap: $2.83B
• Dividend Yield: N/A
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: -18.11%
• EPS Growth: -516.37%
• Country: US
• Employees: 8,300
• Sector: Communication Services
• Sector Strength: 84
• Industry: Internet Content & Information
• EPS (TTM): -2.80
• Shares Outstanding: 74,347,570
• 10 Day Avg. Volume: 817,524
• 30 Day Avg. Volume: 1,189,407
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.50
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $53.20
• Price Target Upside: 50.62% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

IAC's overall stock score reflects mixed strengths and challenges. The strong balance sheet and strategic corporate events provide stability and potential for future growth. However, profitability challenges, unattractive valuation metrics, and bearish technical indicators weigh heavily on the score. While there are positive developments highlighted in the earnings call and corporate strategies, the stock faces significant hurdles that impact its overall score. The combination of these factors results in a cautious outlook for the stock.

Positive Factors

Digital Advertising Demand

IAC is signaling fairly robust demand right now across its primary business unit (DDM digital), which stands out among its digital advertising peers.

Profitability

Profitability looks solid even in a softer environment, suggesting resilience in the company's financial health.

Share Buyback

The company made good on buying back 5% of the outstanding shares, indicating a positive move for shareholders.

Negative Factors

Consumer Business Performance

Care’s consumer business was softer than anticipated, although offset by a growing enterprise component.

Core 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.

Digital Revenue Performance

Dotdash digital revenue showed a slight miss and there was a mixed performance within Care.com, with Enterprise performing well and Consumer performing poorly.

IAC/InteractiveCorp. Business Overview & Revenue Model

Company Description

IAC/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 Money

IAC/InteractiveCorp generates revenue through a variety of channels aligned with its diverse business portfolio. A substantial portion of its income is derived from digital advertising across its media platforms and websites, which attract significant user engagement and traffic. Additionally, IAC earns money through subscription services and premium memberships, particularly in its online dating segment with brands like Match Group, which includes popular dating platforms such as Tinder and Match.com. The company also benefits from transaction fees and service charges in its home services and marketplaces segment. IAC's strategic acquisitions and investments in high-growth potential companies further contribute to its financial performance, enabling it to capitalize on emerging opportunities in the digital space. Key partnerships and collaborations with other tech and media companies bolster its market presence and revenue-generating capabilities.

IAC/InteractiveCorp. Financial Statement Overview

Summary

IAC/InteractiveCorp shows a mixed financial performance. The income statement reveals profitability challenges and inconsistent revenue growth, with negative margins indicating operational inefficiencies. The balance sheet is strong, with no debt and a stable equity base, supporting financial stability. Cash flow trends are improving with positive free cash flow growth, though historical volatility poses risks. Overall, the company's financial foundation is solid, but profitability and growth consistency are concerns.

Income Statement

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

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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.81B	4.37B	5.24B	3.70B	2.76B
	Gross Profit
2.75B	3.02B	3.31B	2.39B	2.04B
	EBIT
-4.23M	-260.76M	-362.02M	-17.61M	-272.52M
	EBITDA
-4.23M	1.10B	-906.45M	949.66M	486.01M
	Net Income Common Stockholders
-539.90M	265.94M	-1.20B	597.55M	269.73M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.80B	1.45B	1.66B	2.14B	3.59B
	Total Assets
9.55B	10.37B	10.39B	12.61B	9.16B
	Total Debt
1.97B	2.49B	2.05B	2.08B	712.28M
	Net Debt
168.68M	1.19B	632.37M	-42.49M	-2.65B
	Total Liabilities
3.24B	3.58B	3.79B	4.84B	1.78B
	Stockholders Equity
5.58B	6.08B	5.93B	7.18B	6.60B
Cash Flow		Free Cash Flow
289.01M	48.16M	-222.54M	46.74M	93.86M
	Operating Cash Flow
354.52M	189.53M	-82.79M	136.95M	154.58M
	Investing Cash Flow
276.82M	-87.47M	-494.81M	-2.90B	-1.87B
	Financing Cash Flow
-113.08M	-223.01M	-112.65M	1.41B	4.35B

IAC/InteractiveCorp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IAC, the sentiment is Neutral. The current price of 35.32 is above the 20-day moving average (MA) of 34.52, below the 50-day MA of 36.48, and below the 200-day MA of 39.01, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 53.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IAC.

IAC/InteractiveCorp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	80 Outperform	$1.54B	23.61	9.18%	4.54%	26.71%	-23.67%
YELP	76 Outperform	$2.23B	18.10	17.79%	―	5.61%	37.61%
MTCH	65 Neutral	$7.39B	14.99	-865.98%	1.27%	3.41%	-10.41%
ANGI	65 Neutral	$539.44M	15.81	5.05%	―	-16.79%	―
Sector *	60 Neutral	$13.74B	7.25	-2.74%	3.81%	2.21%	-37.97%
CARG	56 Neutral	$2.78B	154.59	3.62%	―	-2.17%	-26.53%
IAC	55 Neutral	$2.83B	―	-15.07%	―	-18.11%	-516.37%

IAC/InteractiveCorp. Corporate Events

IAC/InteractiveCorp Reports Q1 2025 Revenue Increase

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.

Spark’s Take on IAC Stock

According to Spark, TipRanks’ AI Analyst, IAC is a Neutral.

IAC’s overall stock score reflects a mix of strengths and challenges. The strong balance sheet and strategic corporate events provide stability and potential for future growth. However, profitability challenges and unattractive valuation metrics weigh heavily on the score. Technical analysis suggests bearish momentum, adding to the cautious outlook. While there are positive developments highlighted in the earnings call and corporate strategies, the stock faces significant hurdles that impact its overall score.

To see Spark’s full report on IAC stock, click here.

IAC Announces New Share Repurchase Authorization

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.

Spark’s Take on IAC Stock

According to Spark, TipRanks’ AI Analyst, IAC is a Neutral.

IAC’s overall stock score reflects a mix of strengths and challenges. The strong balance sheet and strategic corporate events provide stability and potential for future growth. However, profitability challenges and unattractive valuation metrics weigh heavily on the score. Technical analysis suggests bearish momentum, adding to the cautious outlook. While there are positive developments highlighted in the earnings call and corporate strategies, the stock faces significant hurdles that impact its overall score.

To see Spark’s full report on IAC stock, click here.

IAC Nominates Tor R. Braham to Board

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.

Spark’s Take on IAC Stock

According to Spark, TipRanks’ AI Analyst, IAC is a Neutral.

The overall stock score for IAC is driven by a mix of positive and negative factors. The strong balance sheet provides stability, but profitability challenges and inconsistent revenue growth weigh on financial performance. Technical analysis suggests bearish momentum, while valuation metrics are unattractive due to recent unprofitability. Earnings call insights and corporate events provide some optimism with strategic improvements and shareholder-friendly actions. Overall, while there are positive developments, the stock faces significant challenges that impact its score.

To see Spark’s full report on IAC stock, click here.

IAC Completes Spin-Off of Angi Inc.

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.

Spark’s Take on IAC Stock

According to Spark, TipRanks’ AI Analyst, IAC is a Neutral.

IAC’s overall stock score of 63 reflects a balanced view of its strengths and challenges. The company’s solid balance sheet and improving cash flows are positive financial indicators, but profitability issues and inconsistent revenue growth weigh on its financial performance. Technical analysis suggests short-term bullish momentum, while valuation remains a concern due to negative earnings. Recent earnings call insights and strategic corporate events provide a mixed but slightly positive outlook, highlighting operational improvements and strategic initiatives.

To see Spark’s full report on IAC stock, click here.

IAC/InteractiveCorp. Completes Spin-Off of Angi Inc.

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.

IAC/InteractiveCorp. Announces Spin-Off of Angi Inc.

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.

IAC Expands Share Repurchase Program by 10 Million

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.

IAC/InteractiveCorp’s Dotdash Meredith Releases Financial Statements

Dotdash Meredith Inc., a subsidiary of IAC/InteractiveCorp, has released its consolidated financial statements for the years ending December 31, 2024, and 2023. The independent audit conducted by Ernst & Young LLP concluded that the financial statements present a fair view of the company’s financial position, adhering to U.S. accounting standards. The audit report highlights the company’s ability to continue as a going concern and notes the management’s responsibility for financial statement preparation and internal controls.

IAC/InteractiveCorp Reports Q4 2024 Financial Results

IAC announced its Q4 2024 financial results, revealing a 6% decline in total revenue compared to Q4 2023, alongside a notable operating income of $51 million. The company’s board approved the spinoff of Angi Inc., expected in the first half of 2025, and CEO Joey Levin will transition to an advisory role post-spin-off. Dotdash Meredith reported a 10% increase in digital revenue, contributing to IAC’s over $1 billion annual digital revenue, while Angi Inc. and Care.com showed varied financial performances. The company also extended a key service agreement with Google and reported increased financial flexibility due to a reduced leverage ratio.