Zillow is the digital front door for U.S. real estate—think of it as the Google Maps for homes, where buyers, sellers, and renters start their search and agents pay to be found.
Money comes from selling ads and leads to real estate agents via its IMT marketplace, plus mortgage and closing services. Gross margin is high at 72.88%, but net margin is razor-thin at 1.96%—revenue is recurring but barely profitable.
Its brand and traffic scale make it the default listing destination, but CoStar's Homes.com and Redfin are aggressively buying ads and building their own audiences, chipping away at its lead monopoly. Moat is eroding.
Sell (sector percentile 10) — value C-, growth C, profitability B-, momentum C-, revisions D. Updated daily, sector-relative, identical for every user.
Key events, in time order
Q2 beat estimates but shares fell 10.9% due to layoff costs and executive changes.
Zillow reports Q2 EPS of $0.52, beating consensus of $0.44; year-ago was $0.40.
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The post speculates about potential layoffs in the real estate sector, including Zillow, indicating a bearish sentiment due to industry-wide challenges.
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