Why Trulia Shares Are Movin' on Up
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Trulia have risen over 14% today after the company delivered a decent earnings report paired with strong forward guidance.
So what: The housing-research site reported revenue of $24 million, a 97% increase over the year-ago period and above Wall Street's $21.1 million consensus. However, a $0.02 loss per share came in below the consensus estimate of a $0.01 loss. Despite that whiff, Trulia now expects second-quarter revenue in the range of $27.3 million to $27.7 million, which comes in well ahead of the $24.5 million consensus. Trulia enjoyed 52% year-over-year growth in monthly unique visitors to a new total of 31.4 million, a 122% increase in mobile monthly unique visitors, and a 42% year-over-year increase in subscribers, to 27,920, bringing in about $187 per subscriber, which was a 46% year-over-year improvement. Big growth from tiny starting points all around!
Now what: Trulia is worth $1 billion today. Think about that. It is worth over 10 times its forward annual sales and is not without competition in the housing-research website field. Sure, the stock might keep going up -- but to be even close to fairly valued, the company would need to grow at an even faster rate than this. Right now, this resembles nothing so much as a tiny little echo of the dot-com bubble.
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The article Why Trulia Shares Are Movin' on Up originally appeared on Fool.com.Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter @TMFBiggles for more insight into markets, history, and technology. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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