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Is IAC a good stock to buy? We came across a bullish thesis on IAC Inc. on High Growth Investing’s Substack by Stefan Waldhauser. In this article, we will summarize the bulls’ thesis on IAC. IAC Inc.'s share was trading at $42.24 as of June 9th. IAC’s forward P/E was 200.00 according to Yahoo Finance.

IAC Inc., together with its subsidiaries, operates as a media and internet company worldwide. IAC rebranding into People Incorporated marks a decisive structural reset that effectively signals the end of its long-running identity as a sprawling internet holding company and the beginning of a far more focused investment narrative.

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Under Barry Diller’s leadership, the company is being simplified into two core pillars: People Inc., its digital publishing and media ecosystem, and its strategic 26% stake in MGM Resorts, now valued at approximately $2.6 billion. The change, formalized in Diller’s April 28, 2026 shareholder letter, is more than cosmetic, as it explicitly confirms a pivot away from opportunistic capital allocation and toward concentrated operating ownership and high-conviction assets.

People Inc. emerges as the operational centerpiece, having delivered ten consecutive quarters of digital revenue growth and generating roughly $1.2 billion in digital revenue in 2025. The business is positioned as a modern media platform rather than a traditional publisher, leveraging distribution across social platforms, Apple News, live events, and proprietary technology, with sustained profitability and scalable reach. This reinforces the argument that the market is underappreciating the durability and compounding potential of the asset.

The second pillar, MGM Resorts, provides an inflation-resistant, real-world counterbalance to digital exposure, with Diller emphasizing its resilience against technological disruption. Meanwhile, the broader corporate transformation includes merging IAC’s corporate functions with People Inc., generating approximately $40 million in annual cost savings and streamlining governance under new leadership, with Neil Vogel appointed CEO of the combined group.

Non-core assets are expected to be divested, further tightening the structure and likely unlocking value through debt reduction, buybacks, or potential future spin-offs. Overall, the rebranding reduces complexity, concentrates value, and sets up a clearer path toward rerating, with People Inc. currently implied to be significantly undervalued relative to its operating performance and strategic positioning.

Previously, we covered a bullish thesis on IAC Inc. (IAC) by Boyar Research in February 2025, which highlighted its spin-off-driven value unlocking, turnaround in core assets, and capital allocation reset under Barry Diller. IAC’s stock price has depreciated by approximately 8.65% since our coverage. Stefan Waldhauser shares a similar view but emphasizes the 2026 rebranding into People Incorporated, highlighting a more concentrated investment structure and clearer rerating path.

IAC Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held IAC at the end of the first quarter which was 49 in the previous quarter. While we acknowledge the risk and potential of IAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IAC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.