Why Zillow Group Inc. Stock Is Down 8%
Zillow Group Inc. (NASDAQ: Z) is down nearly 8% in pre-market trading following the release of its Q1 2018 earnings results after the market closed yesterday. Zillow’s results beat analysts’ expectations, which called for revenue of $298 million and adjusted EPS of $0.06, and its strong performance can be attributed to a 5.3% increase in average monthly unique users to 175.5 million and a 15.1% increase in visits to its apps and websites to 1.76 billion. The real question about Zillow is do you really want to own a real estate derivative when all you hear about real estate is tight markets with no inventory (not good for a site wanting you to look at inventory) into a rising rate environment? Thematically that doesn’t sound great.