IAC/InterActiveCorp (IAC) Stock Forecast & Price Target

IAC is seeing some noise in its 1Q26 results due to the Care.com divestiture and discontinuation of Search, but its core business, People, is showing strong performance with 1Q revenues in line and an adjusted EBITDA beating PSC by 12.6%. The recent sale of Care.com and potential for further consolidation around core assets could help bridge the current valuation gap and support a price target of $51. However, the company's focus on investing in new consumer businesses may weigh on segment margins in the short term, and with minimal near-term catalysts, near-term upside may be limited.

IAC is currently facing headwinds in many of its segments, such as the divestiture of Care.com and discontinuation of its Search segment, leading to a decline in total revenues and EBITDA projections. While the simplification and focus on the People segment is a positive step, the company's heavy reliance on acquisitions and lack of diversification may hinder long-term growth. Furthermore, the uncertainty surrounding Google's ongoing litigation and low visibility towards near-term upside from MGM create additional concerns for investors. Overall, a slowdown in growth and potential for negative impact from external factors contribute to the negative outlook on IAC's stock.