Zillow Inc (Z): What Should Investors Do?

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Zillow is a mobile success story with 55% of its visits now coming through mobile devices. That figure bumps up to 60% on weekends as prospective buyers drive around with the Zillow Inc (NASDAQ:Z) app scouting out available listings for them.

Investors were expecting a strong quarter out of Zillow. When Trulia Inc (NYSE:TRLA) shares took off last week after seeing revenue nearly double on a 52% spike in visitors, it was a given that Zillow would have a monster quarter. Even a laggard managed to post double-digit growth last week, as Move Inc. (NASDAQ:MOVE) saw revenue climb 14% on a 10% uptick in visitors.

The near-term future is certainly bright for Zillow Inc (NASDAQ:Z), but the stock had already run up on the expectations of a blowout quarter.

It happens. Bidding wars happen in trendy neighborhoods, and somebody winds up overpaying.

The article Zillow Is Still a Brick House originally appeared on Fool.com and is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Google and Zillow. The Motley Fool owns shares of Google and Zillow.

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