In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a Fool reader, who asks: "I'm very interested in buying this current dip in Zillow's (NASDAQ: ZG ) price but I'm unable to find the reason why this huge selling pressure happened. Can you provide some vision into if this is a good entry point for Zillow or should I wait?" Watch the video below for Jason's answer.
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Report this Comment On November 19, 2013, at 1:56 PM, bearsnsox wrote:
Pat please be aware, Motley Fool is a partner with Zillow so they have a very biased view and never cease to pump this company up
here is the reality, this is not a young company, they are almost 10 years old, they have never been able to stop spending, they claim this is "growth mode" spending to get the public to know their name
i believe this is wrong, they have a business model that is in all essence a call center, selling their website traffic, they never publish their agent turnover rate, so for all anyone knows they lose massive amounts of agents each month and thats why they need to hire all of these cold caller inside sales people to sign up more agents
the margins when factoring in this constant need for calling and trying to sign up agents goes to practically 0, and in the recent quarters, negative since they have posted a loss for the past many quarters
their year over year revenue growth is shrinking, their spending is growing out of control and the housing demand is looking likes it hitting a plateau, not to mention trulia might be bought out, bringing even higher competition
this is a very risky stock, one i believe should be and will be heading to $20 a share
Report this Comment On November 19, 2013, at 4:48 PM, assisgnmeaname wrote:
"The Motley Fool owns shares of Zillow."
Seriously, look no further.
Report this Comment On November 24, 2013, at 7:10 PM, BearlyBullish wrote:
Thanks for answering my question. Very useful
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