Obama Throws Zillow a Bone
Zillow's bracing for what should be a strong quarterly report tomorrow, but it received the presidential seal of approval today.
President Barack Obama will be taking questions in a Zillow-hosted forum -- with CEO Spencer Rascoff moderating -- on Wednesday.
"Zillow Presents: A Better Bargain for Responsible Homeowners: President Obama Answers Your Questions" is a mouthful of an event name, but it's a smart move for both parties. Obama will be delivering his housing policy speech on Tuesday, and if he wants to get consumers to buy into his vision, he may as well go through the top-rated site that attracts more than 50 million unique monthly visitors to its website and two dozen smartphone apps.
It probably only helped that Zillow became the first publicly traded company to accept conference call questions through Twitter or Facebook in its springtime conference calls. Zillow will put those social tools at its disposal during tomorrow's quarterly call and Wednesday's forum with Obama.
Zillow naturally stands only to gain from the exposure of Wednesday's model-affirming forum, but tomorrow's report should be pretty sweet. Yes, analysts see a deficit, but they also see revenue soaring 60% at Zillow.
It also bears pointing out that Zillow has beaten Wall Street's profit targets by 80% or better in each of its past four reports.
Zillow's momentum is also backed by good news from related companies last week. Rival portal operator Trulia and mortgage software provider Ellie Mae saw their shares soar 20% and 16%, respectively, after posting blowout quarterly results.
Trulia -- a bit smaller than Zillow with less than 35 million unique monthly visitors -- saw its revenue soar 77% during the quarter. Ellie Mae posted a 45% pop in revenue.
Naturally Trulia's results are more of an indicator what to expect when Zillow reports, but Ellie Mae's performance proves that turnover in the residential mortgage market continues at a heady pace.
No one should be surprised if Zillow has another market-thumping report tomorrow.
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The article Obama Throws Zillow a Bone originally appeared on Fool.com.
Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Ellie Mae and Zillow. The Motley Fool owns shares of Ellie Mae and Zillow. 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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