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InterActive Is Slowing Down

Shares of InterActive Corp (IACI) plunged on their quarterly results, falling over 10%. Investors are now faced with the question of whether they should sell at a significantly lower price or take advantage of this drop to buy shares. I believe this quarter is a sign of continued weakness and deterioration of IACI's business and am not a buyer at current levels. I will first go over quarterly data and then show why IACI is comparatively overvalued.

IACI reported EPS of $1.29 on $757 million in revenue. EPS was a big beat versus expectations of $0.95 while revenue was very disappointing with analysts looking for a bit more than $805 million. It is important to note that IACI...

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