Zillow has seen its peak--my humble prediction is 60 by year end
Puts at 85. Really lofty valuation, missing estimates/quarterly, turbulent macroeconomic conditions, rising interest rates, pending decreasing home sales, amateur investors throwing money around, leveraged investors, can i keep on going? I've recognize these market conditions--I've lived through a couple of bubbles. Wish me luck.
Sorry. The amateur investors are the ones who've shorted this one.
Do the math. 7 million shares sold yesterday (8/20). Secondary was only 5 million.
As of 7/31 there were 5 million shares shorted. Either many of those shorts have covered, or lots of other folks are buying because they think Z has a bright future.
I'm of the latter opinion. People will always need housing no mater where the economy goes. For renters or buyers, the web is the future and Zillow holds the keys: information, scale, and quality control.
Short squeeze beginning now.