This change successfully differentiated them from YouTube and now they are both the leader in their respective area. Vimeo, unfortunately, lost the battle to YouTube and decided to transform itself from a C2C business to a B2B/B2C business. Vimeo and YouTube started off as competitors with both companies focusing on creating a platform for individual creators to upload and share their videos. Vimeo is currently the second-largest company in the online video space with around 20% market share only behind YouTube ( GOOG). Vimeo experienced explosive growth in the last two years due to the rapid adoption of video amid the tailwind from the pandemic, and it decided to go public last May. IAC has a history of spinning out companies that are growing quickly such as Match Group ( MTCH), the parent company of Tinder, and Angi Homeservices ( ANGI). The company was previously privately owned by IAC Corporation ( IAC), an entertainment media company. Vimeo is a Software as a Service (SaaS) video company that allows businesses and individuals to upload, store, manage, and share their videos online. I believe the current price presents a good buying opportunity as valuation remains compressed while the company is changing for the better. After going through the details of its business transformation, I am really liking the direction they are going and these changes will benefit the company in the long run. The management team has now decided to transform its business in order to re-accelerate growth. It is also due to the disappointing results that Vimeo posted throughout the year, the stock slashed almost 30% in a day last November as its guidance came below expectation. This is partly due to the ongoing market sell-off on small and medium growth stocks amid high inflation and the possibility of a recession happening. The stock dropped from $51 last July to $9.87 at the current moment. Since its IPO last year, Vimeo ( NASDAQ: VMEO), a leading video company has been dropping non-stop. Monica Schipper/Getty Images Entertainment Investment Thesis
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