You may think you’ve never heard of IAC/InteractiveCorp (NASDAQ:IAC), but you have. IAC is a major integrated online player for media and internet services that owns properties that hit almost every demographic trend and every revenue generating possibility out there.
Instead of trying to get you to understand IAC corporate, it may help if you understand what properties it owns. It has dating companies like Match, Tinder, PlentyofFish and OkCupid. It has home services companies Angie’s List and HomeAdvisor.
It has video services like Vimeo, Electus, CollegeHumor and Daily Burn.
It has application software companies like SlimWare Utilities.
All of this helps power IAC stock.
And if that isn’t enough it also has a publishing division that runs Dictionary.com, Investopedia, The Daily Beast, ask.com and CityReivew.
Granted, this isn’t a Disney (NYSE:DIS) sized empire.
But with a $16 billion market cap, it’s certainly up and running and a company that can’t be ignored by its competitors.
Also, for all its breadth and depth, it is well focused on great areas of online growth that complement each other.
For example, having some well-respected niche publications enables its other service-oriented businesses to have some great marketing opportunities. And its likely that whatever customer data can be shared is shared and helping form better targeted advertising and thus, better revenue opportunities.
Building a business this way has become the goal of many companies. Traditionally, a company would advertise with outside publications or other media in the hopes of appealing to their demographic using a shotgun approach or a rifle shot approach.
The problem was, you only knew about the readership what the media company knew about them — or what they were willing to reveal.
When you’re the publisher and the advertiser, you have the ability to target your audiences much better with ads that readers are more likely to respond to. That means you are delivering both content and marketing that readers find valuable.
And if you own both the publishing side and the advertising side, you have built a very lucrative publishing model.
This has been the great challenge for content providers since the rise of digital publishing. Publishers had nothing to sell but the eyeballs of their readers. The bigger their readership, the more reasons advertisers would want space in their “pages.” The sections concept of traditional newspapers are the only real silos newspapers had.
But in digital media, the amount of information is leaps and bounds beyond what print media understood. And to generate revenue, you now need to understand your customers.
Bottom Line on IAC Stock
IAC stock is up over 200% in the past three years. And it’s up 57% year-to-date, including the recent market selloff. That’s testament that IAC is in the midst of building a very successful model that can work year in and year out.
And if that’s true, there is significant upside left.
— Louis Navellier
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Source: Investor Place