IAC/InterActiveCorp (IAC) Stock Forecast & Price Target

The positive outlook for IAC Inc. is bolstered by significant increases in customer satisfaction, evidenced by a 15-point rise in homeowner Net Promoter Score (NPS) and improved retention rates for service professionals. Furthermore, the company experienced a robust nearly 40% growth in affiliate eCommerce, contributing to a notable 22% increase in performance marketing and exceeding expectations with an 8% boost in monetization per session. Additionally, the enhancement of EBITDA margins by over 400 basis points in 2024, coupled with a notable revenue decline improvement at Angi—from 20% year-over-year to 11%—indicates a pathway to sustainable, profitable growth for IAC moving into 2025 and beyond.

IAC Inc. faces a negative outlook due to the downward revision of revenue estimates for FY25 and FY26, with total revenues decreased by 4% and 5%, primarily influenced by headwinds in third-party inventory and lower expectations for Care.com. Additionally, the guidance for consolidated EBITDA indicates a significant shortfall compared to operational company and market expectations, driven by increased corporate costs and transitions, particularly related to the CEO change and the ANGI spin-off. The company is also exposed to various risks, including potential adverse impacts from policy changes by Google on search revenues, rising competition across its segments, and slower digital advertising, which collectively raise concerns about its future financial performance.