Why Trulia Shares Are Movin' on Up

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Trulia (UNKNOWN: TRLA.DL  ) have risen over 14% today after the company delivered a decent earnings report paired with strong forward guidance.

So what: The housing-research site reported revenue of $24 million, a 97% increase over the year-ago period and above Wall Street's $21.1 million consensus. However, a $0.02 loss per share came in below the consensus estimate of a $0.01 loss. Despite that whiff, Trulia now expects second-quarter revenue in the range of $27.3 million to $27.7 million, which comes in well ahead of the $24.5 million consensus. Trulia enjoyed 52% year-over-year growth in monthly unique visitors to a new total of 31.4 million, a 122% increase in mobile monthly unique visitors, and a 42% year-over-year increase in subscribers, to 27,920, bringing in about $187 per subscriber, which was a 46% year-over-year improvement. Big growth from tiny starting points all around!

Now what: Trulia is worth $1 billion today. Think about that. It is worth over 10 times its forward annual sales and is not without competition in the housing-research website field. Sure, the stock might keep going up -- but to be even close to fairly valued, the company would need to grow at an even faster rate than this. Right now, this resembles nothing so much as a tiny little echo of the dot-com bubble.

Want more news and updates? Add Trulia to your watchlist now.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2400702, ~/Articles/ArticleHandler.aspx, 10/1/2016 10:03:22 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 12 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
TRLA.DL $0.00 Down +0.00 +0.00%
Trulia CAPS Rating: *