IAC/InterActiveCorp (IAC) Stock Forecast & Price Target

IAC Inc. is experiencing strong growth in non-session-based revenues, with a notable 16% year-over-year increase in the third quarter, up from a mere 7% in the first quarter of the same fiscal year. The company’s positive outlook is supported by accelerating performance in its digital marketing segment, which surged by 38% year-over-year, alongside steady growth in licensing and other revenues, indicating robust operational performance. Furthermore, IAC’s strategic focus on acquisitions, internal investments, and share repurchases has enhanced shareholder value, while management anticipates a rebound in advertising revenue, contributing to an optimistic financial trajectory.

IAC's financial outlook reflects significant challenges, with consolidated revenues declining 8% year-over-year to $589.8 million in the third quarter, which fell short of consensus estimates. The Care.com segment is projected to generate AEBITDA of only $45 - 50 million in FY25, revised downward from previous guidance and suggesting ongoing revenue struggles, particularly with a 5% year-over-year revenue decline reported in the most recent quarter. Furthermore, the Emerging & Other segment is expected to incur an AEBITDA loss of $30 - 32 million, indicating a continuation of financial deterioration, further exacerbated by the disappointing performance in key areas such as Print and Desktop revenues, both witnessing substantial declines.