Wall Street Journal warned readers today that a poor earnings release out of Zillow could spell bad news for the company's stock. The Journal made a big deal out of pointing out that firms like Zillow -- a company that leads in its niche -- are not likely to wow shareholders if they don't actively participate in the real estate transaction. With home sales off, the concern was that revenue for the company would also suffer.
Not necessarily a wild conclusion. We saw the same thing happen to CoreLogic's revenue recently. CoreLogic is another firm with its fortunes tied to the health of the real estate market.
Investors need not have worried. Zillow best analysts estimates for the quarter by a wide margin. If not a home run, it certainly qualifies as a solid hit. Nothing like the potential strike out the Journal warned about. You can read the story here on HousingWire.
Congratulations to the team at Zillow.
Disclosure: I am retained by Mortech, a business owned by Zillow, but I do not assist the Zillow team with PR or marketing. I do, occasionally, write consumer-facing blog posts for the company.