He said options currently imply a 12.1% one-day post-earnings move.
"While we cannot isolate the discount embedded in IAC for Match, IAC's current market value does imply a discount of ~16% to the combined value of the Match and ANGI [Homeservices Inc.] stakes," he wrote.
announced it would add dating and relationship features, but consensus analyst estimates of first-quarter earnings per share have moved steadily higher.
Short interest is the number of shares sold short, or have been bet that prices will decline, while the float is shares available for public trading.
"We obviously think their lawsuit has no substance and look forward to proving that in court," the company added.
Match shares climbed 3% in Thursday trading and are up 173% over the past 12 months, compared with an 11% gain for the S&P 500. are down 1.2% in premarket trading Wednesday after an analyst at Guggenheim downgraded the stock to neutral.