Adspend arms race in online real estate

|By:, SA News Editor

"Despite a strategy pivot toward shockingly large ad spend" for Trulia (TRLA), Deutsche's Lloyd Walmsley maintains his Buy, though cutting the price target to $43 from $55.

The "ad wars" may bring pain to Trulia and the online real estate space in the short-term, but they "may hasten the end game where margins bottom out and we see the space consolidate." Trulia, he says, continues to trade at a big discount to the group.

TRLA -13.5%, Z -2.8% premarket

Last night's earnings coverage