IAC Stock: When Will Barry Diller Finally Unlock the Hidden Billions?
The holding company is still trading near the combined value of its stake in MGM and its cash reserves, which could present an exceptional opportunity for patient investors.
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Almost exactly nine months ago, I last wrote in detail about IAC here:
Since then, the stock has increased by a respectable 10%. At first glance, that’s not spectacular. However, given that many software and platform companies have come under significant pressure in recent months, this relative stability is quite remarkable. Notably, IAC stock (IAC 0.00%↑) has risen by over 35% in the last six months and is now trading at its highest level in over two years.
However, this price movement does not change my fundamental view. In my view, IAC remains significantly undervalued to this day. The valuation discount does not stem from dashed hopes or operational problems, but from the complexity of the holding structure.
This complexity has always been both a curse and a blessing for IAC. On the one hand, it makes it difficult for the market to value the company. At the same time, it creates enormous opportunities for investors willing to dig a little deeper, as I am doing in this article.
