IAC Travel Units Are Going Nowhere
IAC/InterActiveCorp's (IACI) travel business is on a journey, but Wall Street is increasingly unsure about its final destination.
While $218 million in writedowns caught attention at Barry Diller's e-commerce giant
Additionally, IAC indicated that its Hotels.com lodging business, which disappointed investors with its performance in prior 2004 quarters, is in the midst of a fundamental repositioning. In place of its tradition of presenting itself to consumers as a source for discounted hotel stays -- a strategy that's increasingly difficult to follow through on given the challenges of competition and inventory acquisition -- Hotels.com is now in the process of emphasizing its role as a trusted, objective adviser for travelers in the market for a hotel room.
"A purely price-based positioning no longer makes sense," IAC Travel CEO Dara Khosrowshahi told analysts on a conference call Wednesday. Positioning Hotels.com as a hotels expert, on the other hand, is "powerful and ownable," he said.While outsiders noted that IAC's core nontravel business -- the HSN home shopping operation -- performed strongly, Wednesday's glimpse of the travel business apparently has investors still waiting and seeing before they express definitive confidence in the long-term growth and profitability of the operations. IAC's shares dropped $1.42, or nearly 6%, to trade at $22.58. "The issue is that
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