What You Need to Know About Zillow and Its Home Buying Business
Zillow (NASDAQ: Z) (NASDAQ: ZM) has a very nice, profitable business in the internet, media, and technology (IMT) sector with its Zillow app. The company generates well over $1 billion each year by selling advertising space and other services to real estate agents, who use Zillow to connect to customers.
But the future of Zillow as a growth stock isn't just as an advertising platform, it's as a real estate transaction company. Zillow can leverage its user base and data to actually buy and sell homes, reducing the friction in real estate transactions. But the strategy doesn't come without risk, so understanding how the business works and how Zillow will measure success is important for investors.
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Source Fool.com
