Why Trulia Is Poised to Plunge

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online real-estate listing company Trulia (NYSE: TRLA) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Trulia and see what CAPS investors are saying about the stock right now.

Trulia facts

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 80% of the 41 members who have rated Trulia believe the stock will underperform the S&P 500 going forward.

A few months ago, one of those Fools, All-Star vizzzy, succinctly summed up the Trulia bear case for our community:

Yes, tons of consumers flock to real estate websites and get valuable information on it. But these websites have very little influence on what house a consumers ends up buying, what agent they engage with, what services they hire/purchases they make downstream etc. (unlike say google search advertising, where choice of vendors is huge, differentiation between them little and cost of a "mistake" minimal). The agent controls the transaction. ... All [Trulia] can do is make some money off the agent's advertising budget and round it off with some small change advertising. ... Can't see any e-commerce, consumer subscription or transaction fee revenue in this setup either. Which leaves you with just the advertising piece that's barely profitable.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.