IAC/InterActiveCorp (IAC) Stock Forecast & Price Target

IAC Inc demonstrates a positive outlook primarily driven by its strong digital revenue growth of 9.4% year-over-year, which has notably accelerated compared to previous periods, indicating a robust performance across its digital segments. The growth in performance marketing spend, which increased by 14%, reflects the company's increased investment in marketing strategies that are effectively driving revenue upward. Additionally, IAC's non-sessioned based revenue, which surged by 16% year-over-year, underscores the company's successful diversification and expansion of its revenue streams, positioning it favorably in the competitive landscape.

IAC Inc. faces a concerning financial outlook as it has downgraded its revenue guidance to $330 - 340 million, which falls short of consensus expectations of $350.1 million, indicating weaker-than-anticipated performance across its segments. Notably, Care.com experienced a year-over-year revenue decline of 5% in 3Q, attributed to reduced spending by employers, and the Search segment's AEBITDA forecast of $11 - 13 million for FY25 also disappoints, coming in below consensus estimates. Furthermore, the significant decline in Print revenues by 15% year-over-year and a staggering 39% drop in Search revenues highlight ongoing challenges and deterioration in core business areas, reinforcing the negative outlook on the company's stock.