Zillow
Market Commentary
By Charles Payne, CEO & Principal Analyst

For all the ink Internet-based IPOs have received, this is a name many have neglected. In its three earnings reports, the Company has beaten the street by

67%
200%
233%

In the first quarter, revenues double from the prior year comparison; it was the sixth consecutive quarter of 100%+ year to year increases.

* Marketplace increased 141%
* Unique visitors surged to 31.7 million during the period, up 84%
* Agent subscribers climbed to 18,616, up 74%

The stock recently pulled back from a perfect double top, slumping with names like Facebook. Now the shares are above both the 50 and 200-day moving average and act great.

The street is positive on the stock, although I would like to see wider coverage. Right now analysts that follow the Company see 50% annual growth each year for the next half decade versus 14% for the industry.

There is a fair amount of resistance at $40, but the huge test comes at $43. Beyond there and this stock has potential to rally to $48-$50.

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