IAC/InterActiveCorp (IAC) Stock Forecast & Price Target

IAC Inc. has demonstrated a positive shift in its digital revenue growth, achieving a year-over-year increase of 9.4%, which is a significant improvement from prior quarters. The company has also seen a notable acceleration in performance marketing spend, which grew 14%, and a remarkable 16% year-over-year growth in its fastest-growing revenue stream, non-sessioned based revenue. Furthermore, IAC's strategic focus on enhancing shareholder value through acquisitions and share repurchases underscores a solid foundation for continued financial performance and future growth.

IAC Inc's overall financial outlook appears negative due to multiple segments underperforming relative to expectations and previous guidance, particularly with the Care.com division projected to generate lower AEBITDA in FY25 than previously anticipated, remaining at $45 - 50M. The Search segment also reflects a concerning trend, with expected AEBITDA of $11 - 13M, which is below consensus estimates and slightly decreased from prior performance. Additionally, revenues from the Print segment have declined significantly, alongside a steep drop in Search revenues, highlighting ongoing challenges in generating sustainable growth across its diversified businesses.