If the Zillow culture is one where employees feel as though they can disrespect one another in the way that we are hearing with no consequences from management, then the culture is probably also one where it is ok to disrespect the shareholders and the customers. If you believe pervasive sexual harassment of co-workers is the only ethical leniency allowed by Zillow upper management, then I have some very nice oceanfront property for sale in Iowa that may interest you.
Sentiment: Strong Sell
Options expiration could also be a factor. Looks like someone is blowing puts out of the water. They became very expensive recently.
The major holders that control the majority of the float are squeezing the price in anticipation of the closing of the Trulia merger in the first half of 2015.
Not at all. Market inefficiencies are how good investors make their money. It's still surprising to see people with so much money at their disposal making such stupid investments.
I think that's fine if they want to publicly show off their ignorance. If it's worth 50 billion dollars, where are all of the profits? Zillow doesn't even have half a billion dollars in revenue and they are talking about a 50 billion dollar market cap? I'm tired of hearing about all of the potential while continually seeing dismal financial results. To me, all of this recent hype is nothing more than what most of us expected needed to happen to keep the Zillow price stable before the merger closes "in the first half of 2015." Also hilarious seeing all of the people on here with their magical charts telling them how much father up Zillow is going in the near term.
Do they believe Spencer's dream of aggregating real estate listings online and monetizing the ad revenue will eventually become more than an unprofitable pipe dream. Do they put any weight on his past decade or so guzzling cash and causing the NAR to back a rival company, or do they simply give him the benefit of the doubt because he has attracted enough short critiques to orchestrate a billion dollar short squeeze?
No amount of suspicion when it comes to market movements is unjustified. If the senior traders at the largest banks in the world can rig the forex rates for 8 years before any public mention by regulators, than anything is possible. Forex is the most liquid market in the world but it still gets gamed. Of course Zillow gets manipulated.
Really? Volume is 2.5x normal already. That's all 100-5000 low volume retail investors? Could have fooled me.
On the recent conference call he said "I'm not going to talk about what we are going to name the new combined company yet or how we will handle that- we are still in the final details," or something along those lines. That comment would hint at the fact that there is going to be some kind of unified branding move. Also, large organizations will get around the two sites/two fees attempt to prevent revenue shrinkage. They will go straight to the top and use their size to get better pricing, as I'm sure is done now. If Zillow is not accommodating, they can always go to Rupert Murdoch who now is just as much the target of Zillow/Trulia as are the realors.
It's going to be the merger from hell. The only good part about it for Zillow shareholders is that their stock is trading at 3,000x Spencer Rascoff's projected 2030 earnings for the company so they didn't really have to pay anything for Trulia with the all-stock deal.
Tend to agree. I'm doing multiple things to bet against the idea that this momentum will continue while closely monitoring the direction and trying not to get caught in a costly surprise. If there was some sort of major event catalyst at play this would be an insider trading event of epic proportion -20% in scale. It seems like it's just an opportune moment to launch a short squeeze attack to make the stock look healthy in anticipation of the merger and the massive stock dilution that will follow. If that's the case, it's odd how it played out with the intensity it did but I can think of multiple plausible reasons.
It's amazing how many times you manage to get in and out with no margin available. You must keep a large allocation of cash to facilitate your flaky style. A completely unexpected, unprovoked nearly 20% spike on 2 consecutive trading days is not something for which you can generally mitigate the temporary consequences. I have been positioning for some sort of upward move to stabilize the merger, albeit not the sort of rapid-fire short attack we have seen happen so quickly in the last few days driving the stock up nearly 10% a day, but it wasn't as bad as it could have been. Regardless of how many times you repeat the saying about anyone who is short, I'm far from underwater and still very much in the money on Zillow. Options, used effectively, can make volatility more manageable and add leverage when you need it among other things. This is a perfect combo for a Zillow short.
Joe, come on. Who is nitpicking here? The CEO clearly doesn't believe Zillow stock is the bargain of the century right now. Let's all admit that.
No company will buy Zillow right now for the same reason Spencer Rascoff won't hold any stock. It would be a very irresponsible use of capital at this time. That's why I'm confident in limited upside.
There is a chance of loss, sure. But I minimize my chance of loss and maximize my chance of return.
But look at Yahoo's other recent acquisitions. Zillow doesn't really fit the bill, especially given the price. Why bail this company out right now?