10th February, Zillow delivered 2020Q4 Earnings
Zillow Group is an Internet-based real estate company that has historically focused on deriving ad revenue from third-party brokers on online marketplaces such as Zillow.com, Trulia, and HotPads. More recently it has shifted its focus to iBuying via the Zillow Offers platform.
✓ EPS beat 0.41 vs 0.2775 expected ⬆257.69%
✓ Revenue beat 788.95M vs 740.52M expected ⬆16.42%
Zillow Offers $301.7M ⬇50%
Premier Agent $314.2M ⬆35%
Other Internet, Media, and Technology $109.6M ⬆27%
Mortgages $60.97M ⬆190%
Zillow’s strong results reflect exemplary execution and continued growth during the scary roller-coaster ride that was 2020 – CEO Rich Barton
Although revenue down 16% from last year, it is still far above the analyst consensus.
The company has focused a lot on IMT – Internet, Media, and Technology – segment, being its star performer during the coronavirus crisis, and this will be the renewed area of focus for the company.
Although no forward guidance is provided by the company, the company was able to reinvent itself and its one more story that blossomed from COVID-19 pandemic.
Zillow’s match between Technology and Real Estate is booming. During 2020, the companies website had 9.6B page visits, up 1.5B from 2019!
ShowingTime specializes in scheduling home tours for the real estate industry with 950K agents throughout the US, claiming to be the leading showing software and markets stats service provider. This is not a new partnership, as ShowingTime booked over 50M home tours during 2020!
The company rolled out new features for its virtual tour experience, to make it easier for homebuyers to get a feel for the property without actually visiting in person.
Virtual tours are a key feature during the pandemic as the company reveals that 3D Home tours used on for-sale listings more than tripled between 2019 and 2020, and that virtual home tours attract more traffic compared to listings without them.
⬆$250 from $130 Citigroup
⬆$240 from $200 Goldman Sachs
⬆$225 from $202 Deutsche Bank
⬆$225 from $97 JMP
⬆$218 from $167 Wedbush
⬆$209 from $159 Piper Sandler
⬆$200 from $130 Susquehanna
⬆$161 from $148 Morgan Stanley
⬆$105 from $87 Barclays
As you might know, I love Tech&Innovation. Zillow was able to turn the pandemic in its favor and it’s being heavily rewarded. I believe this is a great fit for my portfolio and will be looking to get more exposure, but not right now, at $181.
What do I want to see before getting more exposure
hit EMA(50) levels, blue line in the following graph
ideally with RSI <50
What do you think of the company?