Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at IAC (NASDAQ: IAC) and its peers.
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 mixed Q2. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.
Luckily, digital media & content platforms stocks have performed well with share prices up 27.1% on average 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 $586.9 million, down 7.5% year on year. This print fell short of analysts’ expectations by 2.4%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.
IAC delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 8.7% since reporting and currently trades at $36.07.
Read our full report on IAC here, it’s free.
Best Q2: 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 $653.6 million, up 22.4% year on year, outperforming analysts’ expectations by 4.2%. The business had a stunning quarter with a beat of analysts’ EPS estimates.
Stride delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 23.4% since reporting. It currently trades at $158.36.
Is now the time to buy Stride? Access our full analysis of the earnings results 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 $25.08 million, up 11.6% year on year, falling short of analysts’ expectations by 6.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Rumble delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 7.2% since the results and currently trades at $7.33.
Read our full analysis of Rumble’s results here.
Getty Images (NYSE: GETY)
With a vast library of over 562 million visual assets documenting everything from breaking news to iconic historical moments, Getty Images (NYSE: GETY) is a global visual content marketplace that licenses photos, videos, illustrations, and music to businesses, media outlets, and creative professionals.
Getty Images reported revenues of $234.9 million, up 2.5% year on year. This number was in line with analysts’ expectations. Overall, it was a strong quarter as it also put up a beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.
Getty Images had the weakest full-year guidance update among its peers. The stock is up 10.5% since reporting and currently trades at $1.90.
Read our full, actionable report on Getty Images here, it’s free.
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 $104.7 million, flat year on year. This print missed analysts’ expectations by 1%. More broadly, it was actually a strong quarter as it produced a beat of analysts’ EPS estimates.
The stock is up 102% since reporting and currently trades at $7.73.
Read our full, actionable report on Vimeo here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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