I am in the daily thread way too much and I have heard many times that many folks would like to see more quality DD on non-MEME stonks. I stated a couple weeks ago that I was going to do one on Zillow. I was able to stop shit posting just long enough to give this a try.
I will include some numbers and links to most everything I lay out in this post, but much of will be anecdotal along with just how much I personally think of the company overall and how I use it. I am not a TA guy personally but do like trends.
$Z is ubiquitous to real estate (RE) as is $GOOG to search and $ZM for video conferencing. It has grown and become a part of pop culture https://www.youtube.com/watch?v=yEfsaXDX0UQ I am also in the insurance business and the top search result anytime you enter a physical address in Google the $Z listing for the property is the top result and we can glean any information needed to be3 able to do an accurate home insurance quote. With the shortage in the housing market, people and families moving more, and the work from home trend continuing, $Z will be at the forefront of the change and disruption that I believe will only accelerate at a pace that will surprise many in my opinion.
The first disruption I will cover is $Z Property Manager. From my own personal experience, it is the greatest thing to come along. I have moved houses in the same city 6 times in 10 years, was in the lake cabin market for many of those years along w having 5 rental properties. First, the marketing alone from $Z has provided the best and most quality applicants for the rental units. $Z simultaneously puts your property on $Z, Trulia, and Hot Spots. Craigslist is nonexistent in this space now (at least in my area) and while $FB marketplace is decent; it does not come close to competing w $Z. Last 8 tenants have all come from $Z marketing. It does not stop there either. Once you get an applicant $Z rental manager allows you take applications, accept applications, and once accepted set up all payments electronically – all online and seamlessly. They will even screen applicants for public records, credit, and criminal history. The lease process is so simple using your own documents and easily insert data, initials, and signatures wherever needed. $Z is now charging (monetizing) the marketing of rentals and I have no doubt they will be able to do so more for all facets of the rental process and I would not blink an eye as long as it is reasonable. Mobile app is easy to use for all parties from my experience. Customer service has been top notch on the 3 occasions I have had any questions. https://www.zillow.com/rental-manager/
The numbers have been fantastic. $Z acquired it’s closest competitor Trulia in 2015 https://www.inman.com/2015/02/17/zillow-trulia-merger-closes/ $Z is coming out of the hyper growth at all costs phase of their business and is now actually making revenue while at the same time still plowing billions back into their business and growing sectors and disruptors at an alarming rate. $Z current share prices is $117.32, off 43.6% its 52 week high of $208.11.
$Z reported 4th Q 2/10/21 and absolute blew past any and all expectations. My rough research had $Z moving from about $164 to $194 on this report and it had ran up nicely up to earnings. In my opinion, it then sold off after this in the general tech sell off that started very close to this reporting date. I wont list all the numbers here, but here they are for you to peruse https://investors.zillowgroup.com/investors/news-and-events/news/news-details/2021/Zillow-Group-Reports-Fourth-Quarter-and-Full-Year-2020-Financial-Results/default.aspx
$Z Q1 2021 earnings report was another beast of a report in my opinion, especially the EPS of $.44 beating expectations by 83% https://www.nasdaq.com/articles/zillow-group-zg-q1-earnings-revenues-beat-estimates-2021-05-05
I believe in addition to what is laid out here, that $Z will disrupt how RE is transacted in the future w iBuying division https://blog.qualia.com/spencer-rascoff-zillow/ , but not only that $Z could disrupt the appraisal industry and mortgage industry in the future as well. I believe all these sectors need to change and that $Z will be the lead agent to do so.
$Z share price has not been this low since Dec 2020, it looks like it has consolidated to me and ready to run and never look back. TipRanks has an analyst price target of $172.62, an increase of 46% from current share price https://www.tipranks.com/stocks/zg/earnings-calendar YahooFinance! has a 2.2 buy rating and a price target of $184.56, representing an increase of 57.3% over current share price https://finance.yahoo.com/quote/Z?p=Z&.tsrc=fin-srch
Obviously, there is way more information out there and analysis then provided for in here, but I wanted to do a DD on something I believe in that isn’t mentioned on WSB much that I have seen and I believe has tremendous long term viability and growth ahead of it. Don’t ever invest based on what some dude on the internet says and I have been long in $Z for a long time and plan to only grow that position: Sold some shares over a week ago to buy a LEAPS Jan 2023 $100 strike and have 50 shares. Plan is to sell CCs over the LEAPS at some point and to pick up more shares/LEAPS.
I have been compiling this long enough and time to go grill some steaks. Good luck!
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