- Zillow 2.0 transformation represents a massive overhaul of the original business model as Zillow moves into the iBuying space. This is a risky but necessary evolution of the company.
- Over the next few years, Zillow's iBuying revenue will dwarf its high margin advertising business.
- The business makeover will require disciplined investment in both the growth and profitability of the business, the latter of which I am following most closely.
- As long as Zillow Offers' gross margin and net loss continue to improve over the balance of 2021, Zillow is a Buy.
For further details see:
Zillow 2.0: Pretty Woman