Clusterstock  Nov 19  Comment 
Jim Chanos, the founder of short-only hedge fund Kynikos Associates, went off on Tesla at the Sohn Conference in London.  According to a source at the conference, Chanos joked that couldn't believe the Zillow and Tesla "short" ideas that he...
Benzinga  Nov 19  Comment 
Zillow Inc (NASDAQ: Z) shares gained more than 6 percent Wednesday after a hedge fund manager said the online real estate company could hit a value of $50 billion. Michael Messara, senior portfolio manager Caledonia Investments Pty Ltd, made...
TheStreet.com  Nov 19  Comment 
NEW YORK (TheStreet) -- Shares of Zillow were gaining 5.4% to $125.40 Wednesday following positive comments by Caledonia Fund senior portfolio manager Michael Messara. Speaking at the Sohn Conference in London, Messara said he expects the U.S....
Clusterstock  Nov 19  Comment 
LONDON (Reuters) - Michael Messara, senior portfolio manager of hedge fund Caledonia, said U.S. property portal Zillow is the firm's biggest ever bet and he expects it to reach an enterprise value of $50 billion. That would be reached by...
TechCrunch  Nov 18  Comment 
Nokia unveiled a new tablet at Slush today in Helsinki. The part of Nokia that did not get sold off to Microsoft launched the N1, a iPad-Mini-sized tablet, with a 7.9-inch screen, running Android Lollipop OS. As you can see from the video Nokia is...
TechCrunch  Nov 17  Comment 
 When consumers are home shopping these days, they tend to be drawn to consumer-friendly portals like Zillow, Trulia, Redfin and others, which offer simple, user-friendly tools to take on what’s otherwise a complex and confusing process. But...
TheStreet.com  Nov 17  Comment 
NEW YORK (TheStreet) -- Shares of Zillow  popped 5.18% to $119.59 in afternoon trading Monday after the online real estate listing company announced it would shut down its Agentfolio service two years after acquiring it. Agentfolio...
Benzinga  Nov 17  Comment 
On Friday, flattish markets performance capped a bullish week. But strength came concentrated mainly in Apple (NASDAQ: AAPL). The stock gained 4.8 percent in one week. At this rate it will hit the old and once-mocked $1111 price target before...


Zillow, Inc (NASDAQ:Z) runs a web marketplace for real estate. The website allows homeowners, buyers, sellers, renters, and real estate agents to connect through the website. In addition, the site provides estimates on the value of homes using a proprietary algorithm. Zillow makes money through subscriptions paid by real estate agents and professionals in order to post their profiles on the site. This allows real estate professionals to gain access to customers and allows customers to more clearly understand their options. The company also makes money through traditional advertising displayed on the website.[1]

Business Overview

For the full year 2010, Zillow reported a total revenue of $30.5M, a 74% increase over the previous year. The company had a net loss for the same period of $6.8M.[2]

New Updates

The company's initial public offering of stock on the NASDAQ occurred on July 19, 2011. The company offered 3.5M shares each for $20. This was above the revised price range of $16-$18. The initial price range was $12-$14. The deal raised a total of $70. The lead underwriter was Citigroup (C).[3]

Trends & Forces

Reliance on real estate professionals

Zillow's business model is to allow free access to individuals who want to buy, sell or rent, while only charging professionals. As a result, Zillow must continue to provide enough value to real estate professionals in order to provide reason for them to pay their subscriptions. The page views of individuals is important as it translates to more valuable subscriptions for professionals, yet this is only indirect. Real estate professionals will only be willing to pay for subscriptions to the extent that it helps them attract new customers.[4]

Dependence on the real estate market

Because Zillow's revenues are closely tied to the level of traffic and the level of subscriptions to the site, its performance is based on the real estate market. A slow market where relatively few homes are being bought and sold will result in decreased interaction on the site and so less revenue. By contract, increased market activity may cause usage of the site to rise.[5]

  1. Z S-1/A 2011 PROSPECTUS SUMMARY "Our Company" pg 1-3
  2. Z S-1/A 2011 PROSPECTUS SUMMARY "Summary Financial and Other Data" pg 9
  3. Renaissance Capital - IPO Home "Zillow surges on early trading" 20 July 2011
  4. Seeking Alpha "Will Zillow's IPO Wow the Market?" 18 July 2011
  5. Z S-1/A 2011 PROSPECTUS SUMMARY "Risk Factors" pg 12-18
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