IAC - What Went Wrong With Vimeo?
There was a lot of excitement when InterActiveCorp (NASDAQ: IAC) announced that Vimeo (NASDAQ: VMEO) would be spun out as its own publicly traded company last year. The video software and management platform was growing like gangbusters during the pandemic, and investors wanted in on the action. This led Vimeo's stock to be valued at a price-to-sales ratio (P/S) of 25 when it made its public debut in June 2021. However, since then, it has been all downhill for Vimeo shareholders, with the share price steadily bleeding out over the past 12 months. As of this writing, shares are down 89.6% from all-time highs set near the IPO.
Here's what went wrong with Vimeo, why the stock is down 90% over the last 12 months, and whether investors should consider buying shares today.
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What Went Wrong With Vimeo?