Zillow Inc (Z): How Does It Compare To LinkedIn Corp (LNKD), Facebook Inc (FB)?

LinkedIn Corp (NYSE:LNKD) operates an online network for professionals and has surged to a valuation of $20 billion. The company, founded in 2002, expects to generate revenue of around $1.5 billion for the year. Earnings are expected to continue surging, but the stock trades at an enormous 88x 2014 estimates. Incredibly a social network for professionals has surged to the size of nearly 10x that of the leading real estate site built in the same time period.

LinkedIn Corp (NYSE:LNKD) and Tripadvisor Inc (NASDAQ:TRIP) do have the advantage of being the unquestioned leaders in their sectors. Zillow Inc (NASDAQ:Z) though faces pressure from Trullia . The stock might not be as well known, but analysts expect the company to report $111 million in revenue on 64% growth for 2013. This compares close to the $176 million for Zillow.

Bottom line

The online market place for real estate websites appears unlimited at these levels. Both Zillow Inc (NASDAQ:Z) and fellow upstart Trullia remain incredibly small for a market as enormous as real estate. Could the leading site eventually reach the value of Tripadvisor Inc (NASDAQ:TRIP) appears unquestioned and the potential to match the success of LinkedIn Corp (NYSE:LNKD) at $20 billion or more than 10x that of Zillow doesn’t seem too stretched.

Unfortunately a lot of time and distance exists between those two periods with no guarantee that Zillow Inc (NASDAQ:Z) will be the eventual winner in the sector. The stock is considerably expensive at the current levels even after falling 15% since the last earnings report.

Investors don’t need to rush into the stock, as the ideal time to buy will be on the next swoon in the stock like back in November of last year when it plunged below $25 and eventually rebounded to over $62.50. Wise investors will realize that Zillow Inc (NASDAQ:Z) has unlimited potential, but the big gains will only accrue to investors smart enough to buy on weakness instead of chasing the stock higher as the risk exists that Trullia might be the eventual sector leader.

The article Zillow Is Worth How Much? originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!