Zillow announces disappointing January Unique Users
If it wasn't for Caledonia Investments building a 15% stake in Zillow, as well as a 13.5% stake in direct competitor Trulia, the Zillow stock price would have dropped like a rock in water after the January Unique User numbers were announced as being a very disappointing 46 million, including the whole bunch of acquisitions closed in the 4th quarter of 2012. Put that in the context that 4th Quarter Unique Users were down by 1.56 million or 4.3% from the 3rd quarter and one has to ask the question as to how Zillow justifies a PE ratio of 287?
Don't believe me read what Benchmark who follow Zillow stated the other day.Benchmark Company noted, “February user traffic, released yesterday, was viewed as disappointing by the street given the modest q/q decline in the projected growth rate and the modest sequential decline vs. January despite the significant ramp in marketing spend forecast for 2013"
About the flexibility of internet-companies on the change of Google's policy, where all internet-companies dipped in Q3/Q4/2012: Local Corp had the biggest flexibility of all internet-companies on the change of Google's policy, where all internet-companies dipped in Q3/Q4/2012.
Local Corps developement of Unique Visitors under the new policy of Google:
11/2012: 18,745,842 Monthly Unique Visitors
12/2012: 22,738,206 Monthly Unique Visitors
01/2013: 26,410,927 Monthly Unique Visitors
Compare with the development of Yelp's Unique Visitors under the new policy of Google:
11/2012: 19,358,705 Monthly Unique Visitors
12/2012: 21,017,483 Monthly Unique Visitors
01/2013: 22,293,301 Monthly Unique Visitors
Compare with the development of Zillow’s Unique Visitors under the new policy of Google: