Let’s dig into the relative performance of IAC (NASDAQ: IAC) and its peers as we unravel the now-completed Q4 digital media & content platforms earnings season.
AI-driven content creation, personalized media experiences, and digital advertising are evolving, which could benefit companies investing in these themes. For example, companies with a portfolio of licensed visual content or platforms facilitating direct monetization models could see increased demand for years. On the other hand, headwinds include growing regulatory scrutiny on AI-generated content, with many publishers balking at anything that gets no human oversight. Additional areas to navigate include the phasing out of third-party cookies, which could make traditional ways of tracking the online behavior of consumers (a secret sauce in digital marketing) much less effective.
The 7 digital media & content platforms stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 3.5% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 18.1% since the latest earnings results.
IAC (NASDAQ: IAC)
Originally known as InterActiveCorp and built through Barry Diller's strategic acquisitions since the 1990s, IAC (NASDAQ: IAC) operates a portfolio of category-leading digital businesses including Dotdash Meredith, Angi, and Care.com, focusing on digital publishing, home services, and caregiving platforms.
IAC reported revenues of $989.3 million, down 6.5% year on year. This print exceeded analysts’ expectations by 5.9%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates.
IAC scored the biggest analyst estimates beat but had the slowest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 12.3% since reporting and currently trades at $33.80.
Read our full report on IAC here, it’s free.
Best Q4: Stride (NYSE: LRN)
Formerly known as K12, Stride (NYSE: LRN) is an education technology company providing education solutions through digital platforms.
Stride reported revenues of $587.2 million, up 16.3% year on year, outperforming analysts’ expectations by 2.9%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 12.3% since reporting. It currently trades at $135.49.
Is now the time to buy Stride? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Ziff Davis (NASDAQ: ZD)
Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ: ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets.
Ziff Davis reported revenues of $412.8 million, up 5.9% year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.
Ziff Davis delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. As expected, the stock is down 36.8% since the results and currently trades at $30.36.
Read our full analysis of Ziff Davis’s results here.
Vimeo (NASDAQ: VMEO)
Originally launched in 2004 as a platform for filmmakers seeking a high-quality alternative to YouTube, Vimeo (NASDAQ: VMEO) provides cloud-based video creation, editing, hosting, and distribution software that helps businesses and creators make, manage, and share professional-quality videos.
Vimeo reported revenues of $103.2 million, down 2.3% year on year. This result beat analysts’ expectations by 2.5%. Aside from that, it was a softer quarter as it recorded a significant miss of analysts’ EPS estimates.
The stock is down 30% since reporting and currently trades at $4.75.
Read our full, actionable report on Vimeo here, it’s free.
Rumble (NASDAQ: RUM)
Founded in 2013 as a champion for content creator rights and free expression, Rumble (NASDAQ: RUM) is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.
Rumble reported revenues of $30.23 million, up 48.2% year on year. This number topped analysts’ expectations by 1.7%. Taking a step back, it was a softer quarter as it logged revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EPS estimates.
Rumble delivered the fastest revenue growth among its peers. The stock is down 12.5% since reporting and currently trades at $7.02.
Read our full, actionable report on Rumble here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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