Why Zillow Has Been Crushing Expectations
Zillow Group's (NASDAQ: Z)(NASDAQ: ZG) stock soared as much as 22% the day after it reported stellar fourth-quarter results last month. Since then, the stock has given back all those gains and more due to the spread of, and panic over, the novel coronavirus outbreak. But sooner or later this too shall pass, and eventually, investors will return to focusing on the impressive execution this online real estate database and realty service has been showing over the last year.
What's been contributing to Zillow crushing expectations of late?
The company's core business, Premier Agent, has clearly turned the corner. Premier Agent makes money by selling home buyer leads to agents who help those people buy homes. Those who do buy homes generate commissions for the agents. This business was growing revenue rapidly until late in 2018, when it slowed to 11% growth in the fourth quarter before plummeting to 2% growth and close to 0% growth in the first and second quarters of last year, respectively.
Source Fool.com
