Why Zillow Inc (Z) Will Get Better

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Competitors

Zillow Inc (NASDAQ:Z) has a couple of major competitors — Trulia Inc (NYSE:TRLA) and Move Inc. (NASDAQ:MOVE). Both these competitors possess unique qualities; however, they are still no match for Zillow.

Like Zillow, Trulia also specializes and runs an online residential real estate site for home buyers, sellers, renters, and real estate professionals. Trulia is the biggest competitor of Zillow. Even though it is the biggest competitor, it still isn’t bigger than Zillow. Trulia currently has approximately 22 million unique monthly users. This is pretty small when compared to Zillow’s 46 million.

Another major player in this online space is Move. Move is the founder of Realtor.com, most of you probably did not recognize its parent company. Likewise, Move is in the same industry as Zillow and Trulia, but only has 15 million unique monthly users. The only reason why I don’t like this stock is because of its low monthly users. Its subsidiary, Realtor.com, simply does not have the unique monthly user flow that the others have to offer. However,  I still rate this company as a buy after Zillow because it has the correct fundamentals and cash for long-term growth.

Conclusion

I believe that Zillow Inc (NASDAQ:Z) will continue to exceed all revenue and consensus estimates as it approaches 2014. Zillow has plenty of growth ahead of it as it expands in to the rental property area. It will also continue to grow its unique user database. Zillow has everything it needs to increase its market capitalization, mobile traffic, revenue, and advertising.

Shazir Mucklai has no position in any stocks mentioned. The Motley Fool recommends Zillow. The Motley Fool owns shares of Zillow.

The article Why Zillow Will Get Better originally appeared on Fool.com.

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