IAC (IAC): Assessing Valuation Following Trade Tension Fears and Digital Ad Challenges

IAC (IAC) shares felt the pressure today after new threats of increased US tariffs on Chinese imports reignited fears about rising trade tensions. Investors are weighing how this could impact technology companies with global supply chains and digital advertising exposure.

See our latest analysis for IAC.

This latest wave of volatility comes after IAC shares slid nearly 9% over the past month and remain down nearly 23% year-to-date. The 1-year total shareholder return stands at -24.6%, highlighting a tougher environment with momentum still on the decline amid digital ad headwinds and renewed macro risk.

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Yet with shares now trading at a sizable discount to analyst targets and sentiment at a low point, investors may be wondering if IAC is undervalued or if the market is already factoring in future risks and weak growth ahead.

Most Popular Narrative: 32.5% Undervalued

With IAC closing at $32.86 and the most widely followed narrative setting fair value far higher, markets may be missing what's fueling this bullish outlook. Here's what those following this thesis are focusing on.

IAC's People Inc. (formerly Dotdash Meredith) is successfully reducing its reliance on Google search traffic by expanding and diversifying into off-platform channels (for example, Apple News, YouTube, TikTok) and leveraging first-party data for broader ad targeting. This positions the company to capture more ad dollars as budgets continue to shift from traditional to digital, supporting higher and more sustainable digital revenue growth and incremental margin expansion.

Read the complete narrative.

Want to know the numbers powering this bold price target? There is a surprising three-year outlook for profit margins and a future PE ratio that turns heads. Discover which of the narrative's financial leaps and ambitious digital pivots might justify such a strong re-rating. Read the full story to see what's driving this valuation call.

Result: Fair Value of $48.69 (UNDERVALUED)

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

However, persistent dependence on Google Search and rising competition from major tech platforms risk undercutting IAC's digital pivot and earnings rebound.

Find out about the key risks to this IAC narrative.

Build Your Own IAC Narrative

If this perspective does not resonate with you, or you are keen to dig into the numbers and trends firsthand, you can craft your own narrative in just minutes: Do it your way.

A good starting point is our analysis highlighting 4 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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