Zillow is now a $US14bn company that is like an REA Group (REA) but exposed to a much bigger North American market. We originally bought the stock 5 months ago at ~$US46, and it’s been a solid run since, up ~30%. They are set to report earnings before the market opens tomorrow, and given the recent run in the stock price, there is a level of optimism clearly built in, with group sales growth of ~12% expected, which would be a good result in MM’s view.
- The macro conditions in recent weeks have turned against ZG with subdued mortgage application activity and rising interest rates becoming a headwind, which means their guidance against that backdrop will be very interesting. We’ll cover the result tomorrow morning.
MM is long & cautiously bullish ZG US
Add To Hit List
