5 Media and Internet Stocks to Watch After Latest Earnings

3. IAC/InterActiveCorp (NASDAQ:IAC)

Number of Hedge Fund Holders: 48

Shares of IAC/InterActiveCorp (NASDAQ:IAC) fell nearly six percent on Wednesday, August 10, 2022, after the media and Internet company swung to a loss in the second quarter.

IAC/InterActiveCorp (NASDAQ:IAC) reported a loss of $10.02 per share, compared to earnings of $2.02 per share in the same period of 2021. Revenue for the quarter jumped 64 percent versus last year to $1.36 billion but missed the consensus of $1.38 billion.

Earlier this year, IAC/InterActiveCorp (NASDAQ:IAC) also appeared in the first-quarter 2022 investor letter of Memphis-based Longleaf Partners Fund. Here’s what the fund said:

“IAC – The conglomerate discount on this digital holding company grew wider in the quarter amidst a period of broad uncertainty and continued technology stock declines. Unlike most of its tech peers, IAC began the year already uniquely discounted and today trades at less than half of our appraisal value and less than 10x estimated free FCF per share power. Underlying holding Angi (previously Angie’s List) reported a disappointing quarter. Angi represents only 25% of value but swings the market perception and stock price since it is also publicly traded. The market is not yet giving credit to the Dotdash Meredith deal creating a digital publishing leader, given the lack of near-term reporting clarity since the deal just closed and 2022 is a transition year. Additionally, IAC’s underlying holdings in carsharing company Turo and casino and online gaming company MGM remain not properly recognized by the market. CEO Joey Levin and Chairman Barry Diller have a history of creating value-accretive catalysts to close the price to value gap.”