Zillow stock prices soar after fourth quarter
Zillow Group Inc, a real estate and transaction website, sailed through the fourth-quarter results by a wide margin. Zillow Group stock soared up into record-breaking double digits and Wall Street analysts boosted their price targets. The Chief Financial Officer of the company had expected the first-quarter revenue to be about $1.1 billion. By the end of January, this expectation had risen by about $889 million. The stock ZG, +1.17% soared 16.8% on February 11th. Before the rally on February 11th, the stock had run up by an average of 12.8% the day after the past five quarterly results were reported. On February 12th, the stock surged 1.2% to another record.
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Experts have attributed this enthusiasm from investors to several reasons. For starters, the buying sector is already hitting a tipping point. Today, we can make a comparison of the costs of putting your home for sale via Zillow and those of selling via a traditional real estate agent.
Zillow has much more value. The numbers show that Zillow is a formidable entity in the marketplace for residential real estate, perhaps much more so than traditional real estate methods. In 2020, engagement across the website and its mobile app skyrocketed. This was doubtless fuelled by the COVID-19 pandemic. As people adjusted to a lifestyle where they spent more time at home, buyers started re-evaluating how and where they wanted to live.
A new cultural trend emerged that slowly seeped into the mainstream. While fantasizing about real estate has always been around, now buyers find that they can live wherever they want and are not restricted by where they work or how long their commute is. The transactional elements of Zillow also played a role in the rise of its stock. Economists predict that there will be a stronger housing market in 2021. Projections show a growth of 21%, 6.8 million home sales, and a double-digit percentage increase in home prices. These higher prices will help pull more inventory onto the market, which means Zillow’s stock will continue to ascend.