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Resilient Fundamentals for InterActiveCorp (IAC) will Help Navigate Through Structural Headwinds

InterActiveCorp (NASDAQ:IAC) is one of the best communication services stocks according to Hedge Funds.

On December 15, Jason Helfstein of Oppenheimer assigned a Hold rating to InterActiveCorp (NASDAQ:IAC) due to valuation concerns. Looking at the company’s sum-of-parts discount, Helfstein sees limited growth potential in the stock. However, his target price of $45 still offers nearly 17% upside.

The stock was subject to an upward price target revision by Jefferies analyst Brent Thill on December 11. The analyst reaffirmed his bullish stance by assigning a Buy rating and also raised his price target from $41 to $45.

Jefferies shared its “2026 Internet Playbook” note with investors, reflecting on some of the challenges ahead for Internet stocks. One of the key areas of emphasis was incremental investments by companies that could pose a risk to business margins. Another critical factor discussed relates to AI disintermediation within the industry, which is a notable headwind. Given these potential issues, the firm recommended that investors remain selective with Internet stocks.

Despite the caution, Thill’s Buy rating on InterActiveCorp (NASDAQ:IAC), along with an upward revision in target price, indicates his confidence in business fundamentals.

InterActiveCorp (NASDAQ:IAC) is a media and internet holding company that produces digital content in various forms, including images, videos, and illustrations. They also publish lifestyle and women-oriented magazines under various brand names. Some of the names include FOOD & WINE, Verywell, BYRDEI, Better Homes & Gardens, and Investopedia.

While we acknowledge the risk and potential of IAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IAC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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