IAC shares fall after Q1 revenue miss as web traffic weakness weighs on results

IAC (IAC) shares fell after the company’s first-quarter results missed Wall Street expectations, with management citing continued pressure on web traffic from Google and the impact of divesting non-core assets, including Care.com. The stock traded at $43.93 after the earnings release, down from $45.17 before the report. COO and CFO Christopher Halpin said the quarter included “notable severance, transaction, and litigation expenses,” reflecting costs tied to the company’s ongoing simplification efforts. People Inc.’s digital operations posted margin expansion and growth in non-session-based revenue, but those gains were offset by expected declines in legacy print and session-based businesses. Investors are watching whether newer digital revenue streams, AI-driven advertising tools and cost reductions can offset traffic declines, as well as the potential impact of Google ad-tech litigation and future licensing partnerships.