QUOTE AND NEWS
Motley Fool  2 hrs ago  Comment 
A favorable legal settlement removed a major overhang on the real estate information provider's shares.
Motley Fool  Jul 12  Comment 
Is Apple ignoring the most obvious streaming music purchase of all?
Forbes  Jul 11  Comment 
Beyoncé continues to live up to her royal nickname: Queen B and husband Jay Z are this year?s highest-paid celebrity couple, raking in a regal $107.5 million over the past year.
New York Times  Jul 8  Comment 
They communicate with breadcrumbs, sporadic noncommittal messages that are just enough to keep you wondering but not enough to seal the deal.
New York Times  Jul 8  Comment 
Hear the tracks (and watch the videos) that caught our pop critics’ attention, from Francis and the Lights’s “Friends” to Kenny Garrett’s “Backyard Groove.”
Motley Fool  Jul 8  Comment 
Even though Zillow is up more than 50% year-to-date, our Foolish contributors have three stocks they believe could leave it in the dust.
Forbes  Jul 4  Comment 
Jay Z's streaming service reportedly hasn't paid some independent labels since January of this year.
CNNMoney.com  Jul 1  Comment 
The world changed for Jay Z on June 25, 1996.
Benzinga  Jul 1  Comment 
Spotify, the popular streaming music platform, boasts 100 million subscribers, nearly twice as many paid subscribers as Apple Inc. (NASDAQ: AAPL) can claim for its Apple Music platform. Apple is in dire need of playing catch-up, which might...
SeekingAlpha  Jul 1  Comment 
Wall Street Journal  Jun 30  Comment 
Apple Inc. is in talks to acquire Tidal, a streaming-music service run by rap mogul Jay Z, according to people familiar with the matter.




 
TOP CONTRIBUTORS

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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