Zillow shares were recently trading $38.91, up $18.91, or 95% above the $20 initial public offering price. But shares were bid all the way up to $60 at the open before settling down some.
Seattle-based Zillow is the third most popular real estate Web site in the U.S., and the shares were initially given a range of $12 to $14 a share, then moved up to $16 to $18, with a preopen IPO price of $20 Tuesday evening.
Zillow's stated mission "is to empower consumers with information and tools to make smart decisions about homes, real estate and mortgages."Zillow's earnings come from real estate and mortgage professionals as well as advertising. The company sells subscriptions to agents and has recently begun an agent review and rating tool. Zillow is also recognizing revenue from its strategic partnership with Yahoo!'s (YHOO) real estate Web site. Zillow provides the real estate listings for the Yahoo! site and expects to see increases in marketplace revenues as a result of the partnership. Revenue should grow from increases in Web site traffic, which has risen sharply since the company's launch in 2008. For the past three Decembers, monthly unique views have increased 48% in 2008, 38% in 2009 and 66% in 2010. The company said its name "evolved from the desire to make zillions of data points for homes accessible to everyone. And, since a home is about more than just data - it is where you lay your head to rest at night, like a pillow -- "Zillow" was born." -- Written by Joe Deaux and Debra Borchardt in New York.
>To submit a news tip, send an email to: email@example.com
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV