Stephens Inc. Analyst John Campbell says one of the stocks he favors is Zillow Group, Inc. (Z). He says the early stages of the home-search process are clearly happening online, creating an opportunity for Zillow.
“Just to frame it up and why we like the setup so much long term, Zillow is currently doing 50% or so of the total category of real estate search, and an even more impressive 70% or so of total mobile-only real estate search,” Campbell says. “They are getting 50% to 70% of the eyeballs that view properties, but they are getting only a fraction of the overall total addressable market, which is $10 billion or so of real estate agent ad spend.”
FOR MORE INFORMATION ON THIS INTERVIEW CLICK HERE.
Campbell says many realtors are still spending advertising dollars in traditional channels like radio, TV, newspapers and bus benches. But, he says consumers have made it clear that they want to move the process online, and Campbell believes eventually the ad dollars will follow consumer activity.
“That has been more of a slow-moving process in real estate, as many agents tend to stick to what’s comfortable,” Campbell says. “Eventually you’ve got enough inertia there that that’s going to equal out, in our view, especially as younger agents rise through the ranks.”
Broadcasters to Benefit from Projected $4B Political Ad Spend
October 31, 2011
Hexcel Corporation (HXL) to Spend $50 Million on R&D This Year
June 03, 2015
Kinder Morgan Inc (NYSE:KMI) Getting in Position to Pay Better Dividend
May 05, 2017
Illumina, Inc. (ILMN) is Still a Robust Growth Story
August 10, 2015
Apple Inc. (AAPL) Still a Cash-Generating Machine
January 07, 2016
