Avoid these two related firms for now

Article Excerpt

IAC has a long history of buying smaller Internet-based businesses and spinning them off once they reach a certain size. Recent examples include video software maker Vimeo Inc. (Nasdaq symbol VMEO) and online dating platform Match Group Inc. (Nasdaq symbol MTCH). However, the stock will likely continue to struggle—it’s down 84% in the past five years—partly because users are shifting from websites to AI-powered chatbots. The outlook for its latest spinoff, Angi, is also weak. IAC INC. $39 is hold. The company (Nasdaq symbol IAC; Consumer sector; Shares outstanding: 86.3 million; Market cap: $3.4 billion; No dividend paid; Takeover Target Rating: Lowest; www.iac.com) owns several online businesses, including U.S. news website The Daily Beast, family care information provider Care.com, and financial investing information site Investopedia. It also owns Dotdash Meredith, which publishes several popular magazines, including People, Better Homes & Gardens, Food & Wine, Allrecipes, Southern Living, InStyle and Real Simple. In May 2017, IAC combined its HomeAdvisor business with Angie’s List, Inc. to create a..