IAC/InterActiveCorp (IAC) Stock Forecast & Price Target

IAC Inc. demonstrates a strong financial outlook, highlighted by significant improvements in key performance metrics across its business segments, including a 15-point increase in homeowner NPS and notable retention rate enhancements of 20% and 45% over six and twelve months, respectively. The company achieved nearly 40% growth in affiliate ecommerce and a 22% rise in performance marketing, alongside a greater-than-expected 8% increase in monetization per session, which contributed to a more than 400 basis point improvement in EBITDA margins for 2024. Furthermore, the anticipated digital revenue growth of approximately 10% for Dotdash Meredith in the upcoming quarter, coupled with a reduction in revenue declines at Angi from 20% to 11% year-over-year, positions IAC favorably for profitable growth through 2026.

IAC Inc. faces several challenges that contribute to a negative outlook, including a downward adjustment of revenue estimates for 2025 and 2026 by 4% and 5%, respectively, primarily due to third-party inventory headwinds and a significant 9% reduction in Care.com revenue projections. The company is also experiencing increased corporate costs related to a CEO transition and the ANGI spin-off, which are expected to impact EBITDA negatively, being forecasted at $41 million and $22 million below operational and market expectations. Additionally, potential risks such as policy changes from Google, increasing competition for Angi, and slower conversions to fixed-price services at Angi and digital advertising setbacks at Dotdash further exacerbate the uncertain financial outlook for IAC.