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.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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 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

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

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!