Zillow is the easiest short in the market going into August 6th earnings report . I have never attempted to short it until last weeks idiotic emotional move upwards that has nothing to do with fundamentals. Was looking for an entry point that was ideal after thurs and Fridays move on the Trulia situation. Will implode on the 6th to 120's or 130,s
I do not believe either company has announced an earnings date yet,If TRLA asks for a higher stock price it can't be good for Z, Usually the acquirer stock goes down when they purchase a company,even if it goes up, it does not go up from $125 to $158 that is absurd, some of these people that bought will be kicking themselves that they did not sell at profit,and shorts that covered with a loss will be kicking themselves that they covered. Z is heading back to under $100 but shorts must be patient at least 6 weeks. By Labor day we will be down over 40 %
Bloomberg this weekend says that Zillow investors wild upward move of Z stock shows their support of the merger!?? What it shows is how many shorts were squeezed. (Z is "hard to buy" and TRLA can't even be shorted very often)...and what a large percentage of investors see Zillow as even more wildly overpriced!
How can reducing two clicks per homelooker to one convince advertisers to pay more than double??