IAC stock rocked by guidance confusionOctober 24, 2012: 6:11 PM ET
IAC/InterActiveCorp shares took a tumble Wednesday, amid confusion surrounding the company's 2013 forecast.
Prior to the market's opening bell Wednesday -- IAC, which runs sites like Ask.com, Dictionary.com and Match.com -- issued third-quarter earnings that topped Wall Street's expectations. Following the release but prior to its earnings call, IAC said it expects to report an operating loss for its "media and other" segment in 2013 in a filing with the Securities and Exchange Commission.
But StreetAccount, a financial information and analytics service provided by FactSet, mistakenly reported that IAC expects an operating loss for the whole company. FactSet said it quickly recognized its error and issued a correction.
But confusion triggered a steep sell-off in IAC's stock, with shares falling as much as 14%, before bouncing back. The rapid moves prompted a single-stock circuit breaker, which is intended to limit violent swings in stock prices. The stock was halted for five minutes in late morning trading, but some trades continue to take place erroneously. Later in the afternoon, Nasdaq said it would cancel the trades that were executed while the stock was halted.
Though IAC (IACI) shares recovered some ground, they still closed down more than 8% Wednesday.
The segment that IAC expects the loss in includes College Humor, Vimeo and Newsweek Daily Beast. Last week, IAC, owned by media mogul Barry Diller, announced that it will shift weekly news magazine Newsweek to online-only publication next year, discontinuing its print version after 80 years.