Shares of IAC/InterActiveCorp (NASDAQ:IAC) were moving higher last month after the company posted strong monthly metrics for March and took steps toward spinning off Vimeo, a YouTube competitor. IAC also benefited from broader enthusiasm for the economic reopening, especially at the beginning of April.
According to data from S&P Global Market Intelligence, the stock finished the month up 17%. The chart below shows the gains for the diversified media company came in the first half of the month before it traded up and down in the second half of April.
IAC jumped out of the gate in April after the company announced its board of directors for Vimeo, taking another step toward spinning off what is now its most valuable asset. IAC's CEO Joey Levin said, "Vimeo has been part of IAC for 14 years, growing into a strong industry leader ready to stand on its own." Among the board members are Levin himself, film director Spike Lee, and Coinbase CFO Alesia Haas.
The following week, the stock got another boost when Cowen raised its price target from $265 to $300, as analyst John Blackledge said he now sees Vimeo's revenue growing 32% annually for the next five years.
The stock then peaked on April 13 after IAC released monthly metrics showing that revenue at Angi, the home services marketplace, jumped 31%, and Vimeo's revenue grew 60%. Revenue in its other business segments, including Dotdash and Search, was strong as well, though it was lapping easy comparisons with the start of the pandemic a year ago.
IAC has been a big winner over the last year, following its successful spin-off of Match Group, and the company's track record shows it has a long history of successfully cultivating new businesses.
Investors will hear from IAC on May 6 when it reports first-quarter earnings after hours. Comparisons will be impacted by the loss of Match, but keep an eye on updates for the Vimeo spin-off, the turnaround at Angi, as well as new businesses.