dorfmanmaster

Zillow bull-case idea!

Long
NASDAQ:ZG   ZILLOW GROUP INC
Since its all-time-high on 2/2/2020 at $66; which was reached due to a 12% jump from earnings ... ZG has fallen 50%

As we have seen in the past few volatile weeks, some stocks have outperformed due to the idea they will benefit from the COVID.
For example:

  • People buying masks, hand sanitizer ( CLX )
  • People are staying home to work (ZM)
  • People are staying home streaming ( NFLX )
  • People are stocking up on durables, non-perishables (COST, WMT , PG , CPB )
  • Pharmaceuticals are producing cures/vaccines/diagnostic tests ( CODX , GILD)

With interest rates as low as they have ever been; housing is becoming very cheap, allowing people to buy more, and more expensive houses.

With the latest trend of staying home, plus people wanting to buy homes. I believe Zillow ( ZG ) could be a gainer.


--> Set tight limits, as negative momentum has been killing the bulls.

Rest up this weekend, happy trading!

Comments

Zillow will go bankrupt, they are holding over 2k homes and have to sell them. No one is buying because 3 million people lost their jobs last week and lenders are spooked, you'd have to be insane to buy this stock. Realtors are their other source of revenue for ads, they won't be running ads as no one is buying houses in a pandemic.
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Graham31 Graham31
@Graham31, I mean it came back since this was posted, but from here forward it should crater.
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@Graham31, would you be willing to short the stock then?
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