Zillow doesn't make a commission on home sales. It earns money via advertising by brokers and related entities, as well as subscriptions to real estate data that is above and beyond what the average individual sees on the website. In a softening market, agents need more, not less advertising exposure and data. In addition, Zillow also provides info on rentals. So when sales are soft, rentals are up. Win-win. As for the stock price - who knows. I am long but nothing would surprise me. I'm a long term investor and can handle the swings.
Agreed but there is too much competition - TRULIA , REFIN for example. Also MLS listing is the main driver of Home sales and that is not going away. Why is Zillows PE so HIGH..It is going to tank !!!!!!!!!!!