Zillow (Z) released earnings yesterday, reporting higher than expected revenue, but still lost eleven cents per share. The pre-earnings hype centered around the expected sales growth, which was significant, but Zillow’s ballooning sales and marketing costs effectively offset sales revenues. The company is growth-oriented and forward thinking as compared to its closest competitors, but traders worry that Zillow may have put the cart before the horse in their pursuit of a rapid and expensive marketing expansion.
Brady Randall
Bradyr@keeneonthemarket.com