Please ensure Javascript is enabled for purposes of website accessibility

Why Zillow Stock Soared Higher Thursday

By Daniel Sparks - Updated Feb 20, 2020 at 12:40PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Fourth-quarter revenue was far higher than analysts were expecting.

What happened

Shares of online real estate marketing services company Zillow Group (Z 0.98%) (ZG 1.72%) skyrocketed on Thursday, rising 22% as of 10:45 a.m. EST.

The stock's gain follows the company's fourth-quarter results. It's not surprising that shares are jumping; the company's revenue obliterated analyst estimates and its non-GAAP (adjusted) loss per share was narrower than expected.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Zillow's fourth-quarter revenue surged 158% year over year to $943.9 million. Analysts, on average, were expecting revenue of $814.6 million. The tech company's non-GAAP loss per share of $0.26 was narrower than a consensus forecast for a loss of $0.30.

"Our team's strong execution delivered record Q4 and full year results that beat our outlook on every measure," said Zillow CEO Rich Barton in the company's fourth-quarter earnings release.

Now what

Zillow expects more wild top-line growth in the first quarter of 2020. Management guided for revenue in the period to be between $1.021 billion and $1.056 billion. Analyst forecasts called for first-quarter revenue of $912.4 million. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Zillow Group, Inc. Stock Quote
Zillow Group, Inc.
ZG
$40.92 (1.72%) $0.69
Zillow Group, Inc. Stock Quote
Zillow Group, Inc.
Z
$41.36 (0.98%) $0.40

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.