Zillow: Surging Rentals Helps To Affirm The Bull Case For This Housing Super App

Jun. 05, 2024 4:09 PM ETZillow Group, Inc. (Z) StockZ2 Comments
Gary Alexander
31.23K Followers
(8min)

Summary

  • Zillow's shares have dropped over 25% this year, creating an opportunistic buying window for longer-term investors.
  • Zillow's Rentals business is growing at over 30% year-over-year and addresses a $25 billion TAM. This is helping to pad slower growth in other areas of the business.
  • We shouldn't ignore the fact that prior-year comps are also getting easier, however, and Zillow's Residential arm is seeing growth re-accelerate.
  • Adjusted EBITDA is also growing at a +20% y/y clip.
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For several years now, Zillow (NASDAQ:Z) has been in the doldrums. The real estate company has dealt with an overhang of weaker housing demand post-pandemic, plus the uncertainty with the upcoming enforcement of the NAR ruling change that upends the traditional

This article was written by

31.23K 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.

Analyst’s 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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