Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Dot-Com Housing Plays Are on Fire

Last week was pretty good for investors in homebuilders, but it was downright outstanding for investors feeling that the smartest way to play the real estate boom is by buying into the websites arming consumers with information.

Most of last week's biggest winners were the dot-com housing plays. Some of the more prolific names even came through with double-digit gains on the week. Let's take a closer look at four of the standout performers of the past week.

Company May 23 Weekly Gain
E-House (NYSE: EJ  ) $10.25 25%
Move (NASDAQ: MOVE  ) $12.30 21%
Trulia (NYSE: TRLA  )   $38.67 17%
Zillow (NASDAQ: ZG  ) $119.77 12%

Source: Barron's.

Let's start with E-House. The niche's biggest leader isn't a stateside play at all. E-House is a Chinese provider of online and offline real estate services. It posted blowout quarterly results Tuesday. Revenue soared 40%, and E-House's profit of $0.08 a share was twice as much Wall Street was expecting. The cherry on top is that it boosted its top-line guidance. Revenue from online services now makes up nearly half of E-House's revenue in China. 

Half of Move's gains came on Friday, clearly carrying over from the Analyst and Investor Day that it hosted on Thursday afternoon. "Accelerating our momentum" was the theme of Move's presentation, as it explained how it expects to build on the housing boom that's seen inquiries growing even faster than the vigorous real estate activity. 

Move is the parent company of, which along with other consumer-facing websites derives 77% of Move's revenue. As the official Realtor-backed app, it prides itself on having the most up-to-date information that's updated every 15 minutes. 

There wasn't any company-specific news out of Zillow and Trulia. Zillow's chief economist appeared on CNBC and Bloomberg Radio's Radio Surveillance, but he spoke more about general housing trends than about Zillow matters. Zillow had issued a report earlier this week, pointing out that nearly a fifth of mortgages are still underwater and the impact that it has on the market.

Zillow and Trulia didn't directly earn last week's double-digit percentage gains -- in Zillow's case resulting in a new high -- but it's only natural to see the two fast-growing real estate portals move in sympathy with the others gaining ground. The providers of online services for the real estate industry will continue to thrive.

Take advantage of this little-known tax "loophole"
Recent tax increases have affected nearly every American taxpayer. But with the right planning, you can take steps to take control of your taxes and potentially even lower your tax bill. In our brand-new special report "The IRS Is Daring You to Make This Investment Now!," you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.

Read/Post Comments (2) | Recommend This Article (0)

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.

  • Report this Comment On May 27, 2014, at 11:33 AM, BenGrahamIII wrote:

    "The Motley Fool has no position in any of the stocks mentioned." Did Motley Fool sell Zillow?

  • Report this Comment On June 30, 2014, at 1:26 PM, jessievera wrote:

    So if a real estate broker sells quite a few houses then they must do pretty well for themselves. I am interested in the real estate business and I would like to go towards that direction in my career. I've heard good and bad things about being a realtor but it's like that with any job.

    Jessie |

Add your comment.

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: 2971652, ~/Articles/ArticleHandler.aspx, 9/4/2015 11:00:38 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...

Rick Munarriz

Rick has been writing for Motley Fool since 1995 where he's a Consumer and Tech Stocks Specialist. Yes, that's a long time. He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception. He earned his BBA and MBA from the University of Miami, and he now lives a block from his alma mater.

Today's Market

updated Moments ago Sponsored by:
DOW 16,155.48 -219.28 -1.34%
S&P 500 1,926.13 -25.00 -1.28%
NASD 4,702.05 -31.45 -0.66%

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

9/4/2015 10:43 AM
EJ $5.52 Down -0.05 -0.90%
E-House (China) Ho… CAPS Rating: *
MOVE $0.00 Down +0.00 +0.00%
Move, Inc. CAPS Rating: *
TRLA $0.00 Down +0.00 +0.00%
Trulia CAPS Rating: *
ZG $26.37 Down -0.34 -1.27%
Zillow Group (A sh… CAPS Rating: **