IAC's Pieces Come Together
For a long time, Barry Diller was sounding like the Rodney Dangerfield of the Internet sector. His labor of love, IAC/Interactive (IACI), got no respect from Wall Street.
A few years back, IAC emerged from a period of lumpy earnings and -- to the world beyond Diller at least -- from an uncertain strategy on how to unify fragmented units and post consistent growth in both revenue and profit.
But investors shrugged.
While Google (GOOG) has captured the attention of the press and the lion's share of the capital that investors are sinking into growth-driven Internet stocks, IAC was languishing as if it were just another Internet wannabe, treading water in an uncertain market for tech stocks.Diller has consistently shown that Wall Street is taking too dim a view of its earnings performance. According to Thomson First Call, IAC has beaten the Street for five straight quarters, with positive surprises ranging from 6% to 24% above analysts' consensus. The Dangerfield act didn't fit Diller, though. As fun as he is to watch, he'd never make it on the comedy circuit. He'd never have pulled off the role of the self-made Al Czervik in Caddyshack. Good thing, then, that IAC is finally getting some of the respect it deserves. After being stuck in a holding pattern near the $25 mark, IAC began a rally this summer, moving from a low of $23.62 in July to $37.39 in recent trading Tuesday.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV