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Zillow Group, Inc. Message Board

  • buffet8u buffet8u Jul 26, 2012 12:29 PM Flag

    Insane valuation

    Over a 400 PE ratio for a company that relies on real esate broker advertising. To see how crazy this valuation is, consider,

    1. What is the overall size of the real estate marketing spend?
    2. What other companies are competeing for this business (Print advertising, Google pay per clicks,, direct mail, etc. etc.)
    3. Other alternative real estate search engines (redfin,, every Multiple listing service in the country)

    The only reason that Zillow has made any money is by effectively blackmailing brokers to become premiere agents so that their listings are shown with only their name. The value to the other brokers trying to advertise is thereby diminished. Moreover, with hundreds of other good ways to search for real estate on the internet, the value of the Zillow platform in terms of advertising will decline.

    The ill will fostered by strong arming brokers and the general public over the accuracy of the Zestimates, creates a difficult dynamic and invites lawsuits.

    This company is one earnings call away from pulling a Zinga.

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    • you idiots are always trying to target little companies. These companies can make a lot of profit due to easy scaling and high margin. Once the volume kicks up profit roars. Costs can be fixed at these level easily. On the contraray AMZN can sell lots of stuff with revenues from pass through volume with razor margin.

    • I agree with you. I have no position However, looking to initiate short position.High valuation,insider selling and appears to be over extended for now.

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