Zillow: Ignore Short-Term Bearishness

Aug. 27, 2022 2:38 AM ETZillow Group, Inc. (Z), ZG4 Comments
Gary Alexander profile picture
Gary Alexander
25.31K Followers

Summary

  • Shares of Zillow have suffered a precipitous ~50% decline year to date, with losses intensifying after the company reported disappointing Q2 results.
  • While core IMT revenues are declining due to softening real estate transactions, Zillow is still growing traffic.
  • Real estate has always been cyclical, but Zillow's dominance in real estate data and with consumers will remain unchanged.
  • A new partnership with Opendoor for instant home offers replaces the former Zillow Offers feature, and creates a new monetization stream for Zillow.
  • Looking for more investing ideas like this one? Get them exclusively at Daily Tech Download. Learn More »

Zillow

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Zillow's (NASDAQ:Z) (NASDAQ:ZG) stock price chart over the past year has been nearly a vertical line down. Given that, it has admittedly been hard to trust that this real estate internet titan has a path forward, but I continue

Chart
Data by YCharts

Zillow visits data

Zillow visits data (Zillow Q2 shareholder letter)

Zillow Q2 results

Zillow Q2 results (Zillow Q2 shareholder letter)

Zillow adjusted EBITDA

Zillow adjusted EBITDA (Zillow Q2 shareholder letter)

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This article was written by

Gary Alexander profile picture
25.31K Followers
With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.

Disclosure: I/we have a beneficial long position in the shares of Z either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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