Today I cover Zillow Group (NASDAQ: ZG) (NASDAQ: Z)considered by many to be the best-in-class housing technology company. Zillow competes with companies such as Redfin (NASDAQ: RDFN) as well as Opendoor Technologies (NASDAQ: OPEN)… Zillow is Amazon (NASDAQ: AMZN) real estate?
The company’s solution is called Zillow 2.0, and its goal is “to significantly simplify the real estate transaction through technology, services and integration.” Today’s consumers want information at their fingertips and they want an optimized shopping experience powered by technology. The world has changed a lot over the past decade and expectations are constantly growing. Today’s business environment is all about speed and convenience, and consumers are using technology from companies like Netflix (NASDAQ: NFLX), Uber (NYSE: UBER), Lyft (NASDAQ: LYFT), GrubHub (NASDAQ: GRUB), DoorDash (NYSE: DASH), Expedia (NASDAQ: EXPE), Airbnb (NASDAQ: ABNB), Karvana (NYSE: CVNA)and others to take advantage of these opportunities.
Housing is the next logical step in the value chain, and Zillow is one of the first leaders in this disruptive technology space. In the first quarter of 2021, Zillow reported $ 1.22 billion in revenue and was able to beat initial forecasts across all segments. Perhaps most impressively, the Zillow Group reported astounding 169% year-on-year growth in the mortgage segment. This can certainly be a risk for banks and companies such as Rocket companies (NYSE: RKT)… One of Zillow’s risks is its iBuying segment. Zillow acquired 1,856 homes and sold 1,965 homes in the first quarter of 2021.
I discuss this in more detail and express my opinion in the video below. I am also discussing the price of the stock and believe that the stock can be bought now.
* The stock prices used in the video below were during the trading day July 15, 2021. Video published July 15, 2021
This article represents the opinion of an author who may disagree with the “official” recommendation position of the premium consulting service Motley Fool. We are colorful! Bidding on an investment thesis – even our own – helps us all to be critical about investing and make decisions that help us become smarter, happier, and richer.