Money Investor
Long/short equity

Move, Inc: The Unlikely Winner If Zillow Buys Trulia And The "Zillia" Monster Emerges

This past week, news broke that Zillow (NASDAQ:Z) was in talks to acquire Trulia (TRLA) for a price tag approaching $2 billion. This rumored acquisition sent shares of both companies soaring, as investors in Zillow applauded the rumored attempt to take out its largest competitor as shown in the chart below:

Z Price data by YCharts

The irony of course is that both Zillow and Trulia have been investing significantly in advertising efforts to drive explosive revenue growth the last few years. All of that investment has been rewarded by a market hungry for revenue growth while willing to overlook the inability for either company to generate positive EBITDA. The good folks over at ZeroHedge had what I...

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