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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details