Property platform Zillow reported quarterly results last month that were ahead of expectations, though 1Q25 guidance disappointed due to the tough property conditions in the US: “We expect a more challenging housing market in Q1, with industry growth remaining relatively flat year over year.” ZG is the REA of the US property market, enjoying impressive web traffic of well over 200 million unique visits per month.
While it faces a more competitive environment in the US, ZG remains well positioned for when property volumes improve courtesy of lower interest rates.
ZG is not a cheap stock, and it has had a chequered history, however, the last few years have seen them innovate and execute effectively, which has driven a big re-rate higher in the share price.
- We believe ZG looks great under $US70 and would be buying if we had no position: MM owns ZG in our International Companies Portfolio.
MM is long and bullish toward ZG
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