Analysts are Recommending These 5 Stocks for 2022

4.  IAC/InterActiveCorp (NASDAQ:IAC)

Number of Hedge Fund Holders: 47

IAC/InterActiveCorp (NASDAQ:IAC) is a media and internet company. The firm recently acquired Meredith, a publishing company, that will provide recurring revenues for IAC in 2022 and allow it to focus on rehab business projects.  Evermore Global Advisors analyst David Marcus has termed the purchase a “cash cow” for the firm. 

IAC/InterActiveCorp (NASDAQ:IAC) posted earnings for the third quarter in early November, reporting earnings per share of $0.65, beating estimates by $1.11. The revenue over the period was $924 million, up 17% year-on-year. 

At the end of the third quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $1.4 billion in IAC/InterActiveCorp (NASDAQ:IAC), compared to 50 the preceding quarter worth $1.2 billion.

In its Q4 2020 investor letter, Alphyn Capital Management, an investment management firm, highlighted a few stocks and IAC/InterActiveCorp (NASDAQ:IAC) was one of them. Here is what the fund said:

“On November 22nd, IAC announced it would look into spinning out Vimeo, its Software-As-A-Service video creation company, on the back of strong revenue growth and robust investor interest. To quote from the IAC shareholder letter “We just tested Vimeo’s ability to access capital with a small private fundraise to bolster Vimeo’s balance sheet and to repay capital to IAC. We entered into agreements today to raise $150 million of equity capital at Vimeo from outside investors at an implied enterprise value of $2.75 billion, a large multiple of current revenue. We don’t normally think in terms of revenue multiples, but we found real appetite among investors who do – we had more interest in Vimeo than the number of shares we were willing to let Vimeo sell.” In other words, IAC will exploit current valuations while the market is willing to pay for it. This has so far been a good example of our defensive approach towards investing software companies from the cover of an undervalued holding company run by intelligent capital allocators.”