Evaluating IAC (IAC) After People Inc.’s New Meta AI Partnership and Expanding Tech Distribution Deals

People Inc.'s new multi year content partnership with Meta puts several of IAC (IAC) lifestyle brands directly into Meta AI products, raising fresh questions about how this AI distribution push could influence the stock’s narrative and valuation.

See our latest analysis for IAC.

Despite the Meta partnership adding a fresh AI angle to IAC’s story, the stock’s recent 1 month share price return of 10.62 percent comes against a year to date share price decline and a weak 5 year total shareholder return. This suggests sentiment is improving, but long term holders are still underwater.

If this deal has you thinking about where else structural shifts could create upside, it might be worth exploring high growth tech and AI stocks as a way to spot other technology and AI driven stories early.

With IAC still trading at a double digit discount to analyst targets but burdened by years of weak returns and shrinking revenue, is this fresh AI momentum a genuine mispricing, or is the market already discounting any future growth?

Most Popular Narrative: 19.4% Undervalued

With IAC last closing at $36.76 against a narrative fair value near $45.62, the story frames today’s price as meaningfully discounted yet highly conditional on execution.

Rising user engagement with IAC's premium branded content across a growing ecosystem (including the People app, MyRecipes, events, and licensing deals) monetizes persistent digital transformation trends, providing new revenue streams (e.g., licensing to AI firms), incremental margin opportunities, and resilience against industry disruption.

Read the complete narrative.

Want to see the engine behind that upside case? This narrative leans on steep margin rebuilding, shrinking top line, and a bold future earnings multiple. Curious which assumptions really carry the valuation?

Result: Fair Value of $45.62 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there is still meaningful execution risk if Google driven traffic weakens further or new investments like Care.com and D/Cipher+ underdeliver on growth and margins.

Find out about the key risks to this IAC narrative.

Another View: Cash Flows Paint a Tougher Picture

While the narrative fair value suggests upside, our DCF model points the other way, putting IAC’s fair value near $31.18 versus a $36.76 share price. That flags the stock as overvalued on cash flows, not cheap, and raises the question: which story should investors trust more?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out IAC for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 905 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own IAC Narrative

If you see the story differently, or prefer to dig into the numbers yourself, you can craft a complete view in minutes. Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding IAC.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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