InterActiveCorp (NASDAQ:IAC) is considered one of the best communication services stocks by Hedge Funds. Analyst Jason Helfstein of Oppenheimer assigned a Hold rating to IAC on December 15 due to valuation concerns, but still sees nearly 17% upside potential with a target price of $45.

Jefferies analyst Brent Thill raised his price target for Adobe (ADBE) from $41 to $45 on December 11, reaffirming a Buy rating. Jefferies highlighted potential challenges for Internet stocks in their “2026 Internet Playbook,” advising investors to remain selective due to risks like AI disintermediation.

Despite potential industry challenges, Thill’s Buy rating on InterActiveCorp (IAC) and increased target price reflect confidence in the company’s business fundamentals. IAC is a media and internet holding company that produces various digital content and lifestyle magazines under different brand names.

While acknowledging the potential of IAC as an investment, some AI stocks may offer greater upside potential and less downside risk. For opportunities in undervalued AI stocks that could benefit from current trends, consider exploring a free report on the best short-term AI stock.

Read more at Yahoo Finance: Resilient Fundamentals for InterActiveCorp (IAC) will Help Navigate Through Structural Headwinds