Should You Buy the Dip in Zillow?

It's not often investors get the opportunity to buy a disruptive, profitable technology company at a steep discount -- especially when full-year projected earnings growth is in the double-digits. Zillow (NASDAQ: ZG)(NASDAQ: Z) has digitized the home-buying process for consumers, and it has benefited from the stay-at-home economy triggered by the pandemic. But there are signs this shift in the status quo is likely to stick around.

Home prices have had an exceptionally strong year, thanks to record low interest rates driving demand, combined with supply shortages limiting options for buyers. Despite questions about how long these market conditions will hold, recent data suggests home prices are accelerating at the fastest pace in 30 years. It's a development set to benefit Zillow in a big way, and that means the nearly 50% fall in its share price might be a great chance to buy the stock.

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Source Fool.com