11 Best Communication and Media Stocks to Buy According to Analysts

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2. IAC Inc. (NASDAQ:IAC)

Average Price Target Upside Potential According to Analysts: 48.61%

Number of Hedge Fund Holders: 50

IAC Inc. (NASDAQ:IAC) is an American holding company that owns a variety of brands, primarily in media and internet. The company’s business model allows it to strategically establish, invest in, and acquire new products and brands. IAC Inc. (NASDAQ:IAC) has business locations worldwide and its portfolio of brands includes category-leading businesses like Angi, Dotdash Meredith, and Care.com.

The company is currently looking to reorganize and simplify its structure. On January 13, 2025, IAC Inc. (NASDAQ:IAC) announced its Board of Directors has approved a plan to spin off the company’s full stake in Angi. This move will give IAC shareholders direct ownership of Angi and IAC and Angi will become completely separate entities. This strategic move will simplify IAC Inc. (NASDAQ:IAC) and allow the company to focus on its broader portfolio and new growth opportunities. The spin-off will also enhance the company’s ability to use its stock to make acquisitions and incentivize employees.

Longleaf Partners, managed by Southeastern Asset Management, discussed IAC Inc. (NASDAQ:IAC) in its “Partners Fund” fourth quarter 2024 investor letter. The investment management fund highlighted IAC’s strong operational results and noted that the key Dotdash Meredith segment achieved accelerating double-digit cash flow growth through 2024. However, IAC’s stock price remains heavily influenced by Angi’s stock price performance, despite Angi representing only a small percentage of IAC’s overall value. Longleaf Partners expects that this will change in 2025 as IAC Inc. (NASDAQ:IAC) has announced the spin-off of its ownership of Angi. The market took the announcement to mean short-term stock price pressure, but Longleaf Partners expects that this spin-off will allow the market to focus on IAC’s high-quality assets like Dotdash Meredith. Additionally, IAC Inc. (NASDAQ:IAC) will recognize the value of its other assets, like Care.com and Turo. Longleaf Partners believes that with a strong net cash balance sheet, IAC is well-equipped to make strategic moves in any market environment.

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