Zillow stocks rises on Q4 results, Q1 guidance
Shares of Zillow (Z) are jumping as the company posted fourth-quarter revenue of $474 million, up 9% year-over-year, which beat expectations. The company also issued first-quarter guidance, expecting a revenue of $495M-$510M, about in line with Wall Street expectations.
Yahoo Finance Anchors Josh Lipton and Alexandra Canal break down the latest development with the stock and what could mean for the company moving forward.
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Editor's note: This article was written by Nicholas Jacobino
Video Transcript
JOSH LIPTON: Shares of Zillow, they are rising as the online real estate company reporting a revenue beat for the fourth quarter, posting a 9% gain year-over-year on this one. So Zillow, the stock is moving sharply higher here for its Q4 results beat consensus, Allie. Zillow also offered a forecast, which some of the Street actually thought was kind of conservative. I thought one note from RBC was really interesting. They liked this name, by the way. They still tell their clients they think it's a buy. They think given the rate volatility we're seeing, that market probably soften near term versus a month ago, but they're still bullish. Bigger picture they're telling their clients they're looking for further share gains. Could mean they see more meaningful margin expansion than the company is letting on.
ALEXANDRA CANAL: Yeah, I mean, beating earnings is a big deal for a company like Zillow, especially in the slow housing market. It's been quite a wild ride with interest rates. Still high, there's not a lot of inventory on the market, and the Fed's higher-for-longer mantra that seems to be the case. That's certainly not going to help real estate moving forward. But there is some resiliency here in the results. CEO Rich Barton said looking forward into 2024, he is confident in new expanding into more markets. And he said, quote, "the company plans to press on the accelerator."
JOSH LIPTON: Yeah.
ALEXANDRA CANAL: So they're not planning to stop anytime soon and that they've barely scratched the surface when it comes to how much the real estate market has and all the-- the opportunities there.
