Seeking Alpha

Zillow (Z)

  • Dec. 18, 2014, 2:37 PM
    • As expected, Zillow (Z -3.3%) and Trulia (TRLA -3.6%) shareholders have signed off on the companies' all-stock merger by overwhelming margins.
    • Regulators still need to sign off on the deal, which the companies expect will close in 1H15. Zillow previously agreed not to close the merger before Feb. 1, to give the FTC more time to review.
    • Trulia shareholders will receive 0.44 shares of the combined company for each Trulia share they own. Trulia shares currently trade at a 0.43x ratio to Zillow shares (implies a slight discount to the merger price).
    • Shares of both companies are selling off in spite of a strong market rally.
  • Dec. 16, 2014, 3:59 PM
    • Internet stocks have posted substantial losses after a morning market rally proved short-lived. The Nasdaq is down 1.2%.
    • In addition to Google, which has made new 52-week lows, Facebook (FB -3%), Twitter (TWTR -4.7%), Amazon (AMZN -3.5%), and Netflix (NFLX -3.2%) are among the underperforming names. Other decliners: Z -5.5%. TRLA -5.4%. MELI -5.4%. ZNGA -4.9%. ZU -3.2%. ANGI -3.4%.
    • The selloff comes even though Goldman upgraded its rating for the sector to Attractive from Neutral today. The firm noted Internet stocks are collectively down 16% over the last 12 months (maybe 18%-19% after today), and that forward EV/EBITDA multiples have contracted significantly.
    • Internet/social media ETFs: FDN, PNQI, SOCL
  • Dec. 5, 2014, 1:40 PM
    • Zillow's (NASDAQ:Z) site and apps had 74.3M monthly unique visitors in November, -10% M/M due to seasonality but +41% Y/Y. Y/Y growth was 42% in October, and 41% in Q3.
    • Merger partner Trulia (NYSE:TRLA) is naturally following Zillow higher. Last month, Zillow agreed not to close the merger before Feb. 1, to give the FTC more time to review it.
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  • Nov. 26, 2014, 12:58 PM
    • Facebook (FB +2.1%) and Twitter (TWTR +2.6%) are rallying on a sleepy pre-Thanksgiving trading day. The companies have respectively seen 21.9M and 16.1M shares traded thus far vs. 3-month averages of 38.3M and 28.1M.
    • Several other Internet stocks (both U.S. and Chinese) are also moving higher. Z +2.3%. TRLA +3%. BITA +5.1%. EJ +6.7%. SFUN +2.6%. VIPS +3.3%. SOHU +2.9%.
    • Facebook is at its highest levels since selling off in late October due to its Q4 revenue and 2015 spending guidance.
  • Nov. 19, 2014, 9:40 AM
    • Caledonia Funds' Michael Messara has made positive remarks about Zillow (Z +5.5%) at the Sohn Investment Conference, declaring the online real estate leader's shares could reach $770 (!).
    • Both Zillow and Trulia (TRLA +5.1%) are getting a lift from the remarks. Each company has already posted big gains over the last few trading days.
  • Nov. 17, 2014, 1:47 PM
    • For the second trading day in a row (previous), Zillow (Z +4.4%) and Trulia (TRLA +3.8%) are rallying.
    • Zillow's Monday volume (3.55M shares) is already more than 2x a 3-month average of 1.47M. Trulia's volume (944K shares) is nearly 50% above a 3-month average of 634K.
    • No major news regarding the companies has hit the wires. Zillow did recently announce it will shut down its Agentfolio unit (provides a communications platform for real estate agents and home-buyers) in March. "While there are hundreds of agents using the product daily, our customer base is unfortunately not large enough to continue supporting our loyal users," the company told clients in a message.
  • Nov. 14, 2014, 1:22 PM
    • Off sharply from the levels they saw around the time of their July merger announcement, Zillow (Z +7.1%) and Trulia (TRLA +7.3%) are rallying strongly today even as the Nasdaq barely budges. Volume has thus far been moderate.
    • Short-covering could be helping: Zillow and Trulia respectively had 30% and 21% of their floats shorted as of Oct. 31.
    • Both companies sold off following Trulia's Oct. 29 Q3 report, and did so again following Zillow's Nov. 5 Q3 report.
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  • Nov. 6, 2014, 9:14 AM
  • Nov. 5, 2014, 5:51 PM
    • Zillow (NASDAQ:Z) guides on its Q3 CC (webcast) for Q4 revenue of $89M-$90M, below a $91M consensus.
    • Q3 real estate revenue +86% Y/Y to $65.6M; mortgages revenue +24% to $7.1M; display (ad) revenue +30% to $16M.
    • Premier Agent net adds totaled 4,059, raising the total base to 60.877. Average revenue per advertiser rose to $349 from $264 a year ago.
    • Excluding acquisition-related costs, total GAAP costs/expenses rose 56% Y/Y to $91.7M.
    • As one would expect, all-stock merger partner Trulia (NYSE:TRLA) is following Zillow lower. Both companies also sold off following Trulia's Q3 report.
    • Q3 results, PR
  • Nov. 5, 2014, 4:32 PM
    • Zillow (NASDAQ:Z): Q3 EPS of $0.13 beats by $0.05.
    • Revenue of $88.6M (+66.2% Y/Y) beats by $0.6M.
    • Shares +2.5%.
    • Press Release
  • Oct. 29, 2014, 6:11 PM
    • Trulia's (NYSE:TRLA) Y/Y Marketplace revenue growth slowed to 78% in Q3 from 142% in Q2, and its Media revenue growth to 26% from 41%. Marketplace was 83% of Q3 revenue, and Media 17%.
    • The company's monthly unique visitors rose 36% Y/Y in Q3 to 55M; Q2 growth was 48%. Mobile monthly uniques +89% to 29.9M; growth was nearly even with Q2's 92%.
    • Subscribers grew by 3.9K Q/Q to 77.9K. ARPU was $204, down $2 Q/Q and up $8 Y/Y. New contributions to user-generated content rose 5% Y/Y to 1.2M.
    • Excluding restructuring costs, GAAP opex rose 76% Y/Y to $89.3M. Cost of revenue totaled $12M, R&D spend $14.9M, sales/marketing $38.9M, G&A $11.6M, and acquisition costs $10.8M.
    • Trulia isn't providing guidance ahead of its planned merger with Zillow (NASDAQ:Z). Zillow reports on Nov. 5.
    • Q3 results, PR
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  • Oct. 29, 2014, 5:44 PM
    • Top gainers, as of 5:15 p.m.: LAKE +20.9%. CJES +10.7%. APT +9.0%. LOPE +8.8%. FORM +8.2%.
    • Top losers, as of 5:15 p.m.: AFOP -15.6%. GLUU -15.0%. PRXL -12.4%. TRLA -7.9%. Z -5.2%.
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  • Oct. 29, 2014, 4:14 PM
    • Trulia (NYSE:TRLA): Q3 EPS of -$0.08 in-line.
    • Revenue of $67.14M (+66.7% Y/Y) misses by $2.82M.
    • Shares -2.38% AH.
    • Press Release
    | Comment!
  • Oct. 28, 2014, 6:38 PM
    • Facebook beat Q3 estimates, but provided Q4 revenue guidance that was slightly below consensus at the midpoint.
    • Twitter (NYSE:TWTR) -1.7% AH; shares fell 9.8% in regular trading due to yesterday's Q3 results and guidance.
    • LinkedIn (NYSE:LNKD) -1.6%. Pandora (NYSE:P) -1.2%. YELP -1.6%. Zillow (NASDAQ:Z) -1%.
    • Many of the same names sold off after Netflix and eBay's earnings two weeks ago.
  • Oct. 6, 2014, 5:01 PM
    • Zillow (NASDAQ:Z) had 82.8M monthly unique users in September. That's up 42% Y/Y and down 4% M/M (hurt by seasonality and one less day).
    • Y/Y growth rose from August's 35% clip, but was below July's 45% and June's 49%.
    • Shares are at their lowest levels since May, two months before the Trulia merger was announced.
  • Sep. 30, 2014, 11:37 AM
    • Zillow (Z -2.6%) and Trulia (TRLA -1.8%) are selling off following news rival Move is being sold to News Corp. for $950M.
    • News Corp. promises to "use [its] media platforms and compelling content to turbo-charge traffic growth and create the most successful real estate website in the U.S." The media giant also plans to boost Move's "sales and marketing support."
    • Move's sites (inc. currently reach 35M people/month; Zillow claimed 86.3M monthly unique users in August, and Trulia claimed 54M as of June.
    • Zillow and Trulia are respectively down 29% and 27% from their July highs, which were hit amid merger-related euphoria.
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Company Description
Zillow Group Incoperates the real estate and home-related information marketplaces on mobile and the Web, with a complementary portfolio of brands and products to help people find vital information about homes and connect with local professionals.