What Does the Future Hold For Zillow Inc (Z)?

Page 1 of 2

The Fool recently explored Seattle. Today, CEO Spencer Rascoff introduces us to Zillow Inc (NASDAQ:Z), telling us how the online home and real estate marketplace works, what he considers its greatest strengths, and what investors should know about it.

Looking ahead five years, Spencer foresees a major emphasis on mobile services, and expects the brand name to become a household word. Spencer also explains why he identifies with tech companies such as OpenTable Inc (NASDAQ:OPEN) and WebMD Health Corp. (NASDAQ:WBMD).

The Motley Fool’s chief investment officer has selected his No. 1 stock for this year. Find out which stock it is in the special free report: “The Motley Fool’s Top Stock for 2013.” Just click here to access the report and find out the name of this under-the-radar company.

Austin Smith: A lot of young products in your pipeline. Five years out, you’ve got some slightly more mature revenue streams. What does Zillow Inc (NASDAQ:Z) look like?

Spencer Rascoff: Wow. Well, five years from now we’re — almost exclusively might be a little bit of an overstatement — but a predominantly mobile company. We already are, 55%-60% of our usage is mobile. Five years from now, who knows what that number will be, but it’ll be very, very significant. Usage of Zillow Inc (NASDAQ:Z) on smartphones and tablets will be massive.

Zillow Inc (NASDAQ:Z)I think we’ll have a much bigger brand. Today we’re about 50 million uniques in the U.S., but only about 12% of Americans recognize the brand name Zillow Inc (NASDAQ:Z). We’re spending tens of millions of dollars on advertising in 2013 to try to change that. By five years from now, I think the Zillow brand name will be as widely recognized as Netflix, Inc. (NASDAQ:NFLX) or Expedia Inc (NASDAQ:EXPE) or other vertical-leading brands.

Of course at that point, we become more of a must-buy for local advertisers in real estate, mortgages, rentals, and home improvement because if they want to grow their business they need to advertise on Zillow Inc (NASDAQ:Z), which will be the leading brand in our category.

Austin: I know we talked about maybe companies that you guys might … what other young, successful tech companies — maybe Netflix, Inc. (NASDAQ:NFLX) – do you guys identify with, associate with?

Spencer: From a strategy standpoint, I identify a lot with OpenTable Inc (NASDAQ:OPEN) because they have a great mobile presence and a desktop presence, which attracts an audience of consumers, and then they provide software tools to the restaurants, so they marry lead generation with SaaS B2B software tools so, strategically, I look at OpenTable quite a bit.

Page 1 of 2

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!