IAC Plummets 13.01% Despite Earnings Beat as Revenue Miss and Strategic Risks Weigh on 491st-Ranked Stock

IAC (IAC) fell 13.01% on 2025-08-05, with a trading volume of $0.24 billion, ranking 491st in the market. The stock declined despite a Q2 2025 earnings surprise of $2.57 per share (vs. a forecast of -$0.2927), as revenue missed estimates at $586.9 million. The drop reflected investor concerns over revenue shortfalls and strategic risks, including a 2.4% revenue miss and ongoing reliance on Google traffic (now 28% of sessions from Google, down from 52%). The company highlighted 9% digital revenue growth driven by advertising and performance marketing but acknowledged AI-driven disruptions in the digital advertising sector.

Strategic shifts included a focus on reducing Google dependency and expanding the Decipher Plus ad platform. CEO Neil Vogel emphasized the need for direct audience engagement amid AI-driven search changes. The company also revised full-year EBITDA guidance to $247–285 million, reflecting increased investments in new products and higher healthcare costs. Despite strong EBITDA growth of 15% in Q2 and a healthy current ratio of 2.7, the stock’s post-earnings decline indicated market skepticism about long-term revenue sustainability.

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