IAC/InterActiveCorp (IAC) Stock Forecast & Price Target

IAC's strong outlook is supported by its improved consumer and service professional engagement, evidenced by a 15-point increase in homeowner Net Promoter Score (NPS) and significant retention improvements of 20% and 45% over six and twelve months, respectively. The company's financial performance has also been bolstered by a nearly 40% surge in affiliate e-commerce growth and a 22% increase in performance marketing, alongside an 8% rise in monetization per session, contributing to over 400 basis points improvement in EBITDA margins for 2024. Additionally, the revenue decline at Angi has notably decreased from a year-over-year drop of 20% to 11%, suggesting a positive trajectory ahead as the firm prepares for its spin-off, with 2025 guidance predicting continued profitable growth into 2026.

IAC Inc faces a challenging financial outlook, as revenue estimates for 2025 and 2026 have been lowered by 7% each due to third-party inventory headwinds affecting top-line recovery, leading to an overall revenue reduction of 4% and 5% for FY25 and FY26, respectively. The company is also contending with higher corporate costs associated with a CEO transition and the ANGI spin-off, resulting in FY25 consolidated EBITDA guidance that is significantly below operational and street expectations. Additionally, risks stemming from potential changes in Google’s algorithms, increased competition across its segments, and macroeconomic conditions further contribute to a negative outlook for IAC’s stock.