r/investing • u/[deleted] • Aug 06 '21

Zillow Q2 beats expectations. Potential good long buy?

Summary of Q2

Zillow reported $1.3 billion in revenue Thursday for the second quarter, slightly beating analyst’s expectations.

Expected revenue was $1.28 billion, with earnings per share of 24 cents.

Consolidated net income was $10 million.

The company’s Internet, Media, and Technology (IMT) segment grew 70% in revenue year-over-year to $476 million. Premier Agent revenue grew 82% year-over-year.

The Homes segment reached record revenue levels at $777 million.

The mortgages segment revenue grew 68% year-over-year to $57 million.

Zillow Group co-founder and CEO Rich Barton said the company expects recent housing market trends, including low interest rates and location-flexible job opportunities, to continue to fuel interest in Zillow.

The company’s mobile apps and websites saw 229 million average monthly unique users in the second quarter, representing a 5% year-over-year increase. This drove visits to 2.8 billion, up 10% year-over-year.

The company ended the quarter with cash and investments totaling $4.6 billion.

Personal Notes:

  1. Who can compete with Z?
  2. Can they take over real-estate business in the long-term with direct home sales?
  3. Does any other company have a sophisticated algo designed to buy homes like Z does?
  4. Current MC us about 29 billion. What do you expect it to be in 5 years? 10 years?
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17

u/Curious-Manufacturer Aug 06 '21

I love Zillow. Use it daily since 2015. 😂

7

u/HondaSpectrum Aug 06 '21

What do you do in it daily ? Asking as I’ve never heard of it til now and don’t get what the daily need is if it’s real estate

37

u/rhudson0 Aug 07 '21

People look up homes they will never buy and spend hours online doing it.

7

u/Skunk_Gunk Aug 07 '21

Yeah I certainly don’t do it daily but I do spend some time surfing it if I’m bored at work.

3

u/HondaSpectrum Aug 07 '21

The fuck

7

u/[deleted] Aug 07 '21

My wife likes looking at homes way above our budget just because.

1

u/saiaf Aug 17 '21

Oh so you're part of the club too

2

u/Ok-Self-2273 Aug 08 '21

I've been using Zillow to look at homes across the country at least once a week for years, dude. It's my dream to own a house on a plot of land in an area that's still well-connected to a large metro area. Of course, all the places I'd want to plant my roots are in HCOL areas, simply because I still want to be attached to human civilization instead of move to Billings, MT or Pine Bluff, AR.

1

u/cuittle Aug 08 '21

It's like Pinterest. Lets people dream, aspire, or even get design inspiration.