RDFN - Let's Zoom In On Zillow
2024-07-15 10:24:57 ET
Summary
- Zillow Group, Inc. shares have rebounded 25% since May 30, 2024, due to lower mortgage rates and positive non-GAAP earnings.
- However, the company, known for its online real estate services, has not been profitable on a GAAP basis since 2012.
- Zillow's revenue is broken down into Residential, Rentals, Mortgages, and Other categories, with a current focus on its Super App for real estate transactions.
- Can the rally in the shares continue? An analysis follows in the paragraphs below.
Shares of online real estate listing service Zillow Group, Inc. ( Z ) have rebounded just over 25% since May 30, 2024, as lower mortgage rates and a dovish May and June CPI prints have engendered bullish sentiment. Despite the company posting positive non-GAAP earnings and Adj. EBITDA metrics, Zillow has not been profitable on a GAAP basis since 2012, due to its large share-based compensation. The company is well-known to everyone in the real estate industry and those looking for properties to rent or buy. The recent insider buying and renew hopes for interest rate cuts merited a deeper dive. An analysis follows below....
Let's Zoom In On Zillow