- Chelsea Clinton first joined IAC/Interactive Corp’s board nearly a decade ago.
- Her stake in the internet conglomerate has more than quadrupled since Donald Trump’s presidential win in November 2016.
- The massive growth now places her among the major beneficiaries of the Trump economy.
Former first daughter Chelsea Clinton and the parent company of Tinder are a profitable match for each other. Since Donald Trump floored Hillary Clinton in November 2016, the stock of the internet conglomerate has surged over 300% alongside other equities.
Chelsea Clinton, who joined the board of IAC/Interactive Corp (NASDAQ:IAC) in September 2011, currently holds 35,242 shares of the internet conglomerate. IAC/Interactive Corp owns such brands as Tinder, OkCupid, Vimeo and The Daily Beast.
The stock opened November 2016 at just over $60. As of Friday’s close, the stock was trading at nearly $254, a gain of over 320%.
Daughter cashing in on her surname?
At the time of the political upset, the number of shares Chelsea Clinton had received over the years as part of IAC/Interactive Corp’s “Non-Employee Director Deferred Compensation Plan” amounted to 24,838. Based on the opening price in November 2016, these shares were worth about $1.5 million in late 2016. They have now more than quadrupled in value to reach $6.3 million.
The shares Chelsea was first granted when she joined the board recorded an even larger gain. An SEC filing shows Clinton received 6,214 shares in September 2011. At the time of the appointment, the shares were trading at a median price of $40. Their value has since then skyrocketed by over 530% in under nine years.
Chelsea Clinton had no prior experience in the same capacity at a for-profit company when she was appointed a board member. Her mother was the U.S. Secretary of State then.
Donald Trump effect could boost stock even further
Chelsea Clinton’s net worth could go up even further if analyst predictions are anything to go by. Currently, the internet conglomerate is a Wall Street darling with 18 BUY ratings and zero SELL ratings.
If the average stock price target of $281 were achieved, it would boost Chelsea’s existing stake from $8.9 million to $9.9 million, a growth of slightly over 11%.
Chelsea Clinton’s $9 million stake defied short-sellers in 2019
What makes the rise of the Chelsea Clinton-owned stock even more remarkable is that last year, IAC’s crown jewel Match Group (NASDAQ:MTCH), was the most shorted stock in 2019. According to the most recent earnings report, Match Group contributed nearly 95% of IAC/Interactive Corp’s operating income. Match Group, which is listed separately, also has a higher market cap than its parent company – $23.55 billion versus $21.48 billion. Specifically, the percentage of Match Group’s shares that were sold short relative to the existing float was 58.88%.
Other factors that are likely to favor the stock include the “New Year effect”. After spending the holidays alone, singles tend to visit dating sites and apps in increased numbers between Jan. 1 and Feb. 14.
Some dating services see their traffic jump by nearly 50%.
Last modified: September 23, 2020 1:27 PM