What a let down - only 9 people on Twitter and 1 on Facebook participated and sure enough there was a planted question about Zillow Dogs from Brian Bolan at Zacks. You could not make this stuff up. Shame the financial performance was so lousy with a 11 cents a share loss compared to estimates of a loss of 3 cents a share. But when stock based compensation ratchets up from $1.4M to $4.1M its very easy to see why performance deteriorated the way it did. Revenue up 71% and costs up 102% with Sales costs up 138% in a desperate attempt to sign up Premier Agents
Very easy to see why Zillow lost 11 cents a share compared to analysts projections of a loss of 3 cents a share. They are BUYING revenue, simple as that. Revenue increased by 70.7% compared to same quarter last year, but Expenses increased by 102.3%. Sales and Marketing expenses increased by 138.1% on a like for like basis. So it seems they have a sweatshop sales department cold calling Realtors in a desperate attempt to sign up Premier Agents. Unfortunately the incremental revenues generated didn't come close to covering the incremental costs. Anyone can grow revenue by 70% like Zillow did ,but that level of growth is a massive failure for a company with a PE ratio of 350 especially as they throw money at buying the revenue.
Other costs are equally out of synch with revenue growth; Technology & Development costs increased by 111%, and G&A costs increased by 85%. Zillow is failing to achieve any economies of scale as it grows. It has substantial intangible assets on its balance sheet in respect of Goodwill and costs incurred that it is amortizing. Not looking good at all for future and one has to think of possibility for an impairment write off at some time.
Full disclosure: I am a Zillow cynic who has serious issues with how Zillow imposes substantially inaccurate Zestimates on private homes and refuses ALL requests to correct or delete these erroneous valuations when requested to do so by the homeowner. This is totally unacceptable in any fair minded society especially when 17% of Zestimates are more than 25% incorrect.
Well, it certainly means that options were over-valued (no options other than options). Ugh.
I don't know if no shares to short means anything. Perhaps just not enough liquidity. I guess we will see.
No shares to short at all..Institutions not selling. Z goes haywire tomorrow. Hold it until 99. We are in long term BULL market. CAP syas S&P 2000 to break even.
Sentiment: Strong Buy
MYTOOK, how many ids u have. There is no check, and balances in place by YAHOO.
Sentiment: Strong Buy
Been watching this thing before last earnings. Will open at 61. All the weak investors will sell right off the bat because they fear it will go down 80% in one day. Shorts will come in and keep stock at 60.50. Smart money will be buying hand over fist. This was a great quarter, the smart investor understand why EPS was low. They will also understand that revenue crushed estimates. Once they see the stock gaining traction around 10 am Seattle time, the weak shorts will start covering. Buying will continue. Stock will then start getting squeezed at 62. Investors are irrational, on both sides. I'm just going with the winning side.
It could be. We'll have to wait to tomorrow to see which way this is going short-term, but long term is inescapably down.
I would sell on strength if I was long.
what a day this has been owned fslr down 9 pct owned tsla down sold and bought zillow only to lose ah on earnings miss,i am a little confused estimate was for a loss of 3 cents reuters says 14 cents loss was the figure of analist they polled big diference.oh well iam broke and tired .hope your right about tomorrow ?