According to an article on Seeking Alpha, when all high-flying stocks crashed, earlier this year, one well known stock soared to new all-time highs. The move by online real estate leader Zillow (NASDAQ:Z) was made despite valuation multiples most consider extremely expensive.
Zillow posted a Q114 earnings in the black. At the time, analysts expected the company to generate a solid profit for the year, evidently making all the difference to investors willing to push the stock trading in the $80s when social media stocks collapsed up to $140 by July.
The real estate sector is in the peak summer selling season, so it probably helps push the stock higher with monthly metrics soaring as the move to the Internet transpires. Of course, the merger with Trulia Inc. (NYSE:TRLA) helped create the final spike to $160, but Move, Inc. (NASDAQ:MOVE) expects to have a say in that ultimate leadership position in real estate. The current metrics continue to suggest Zillow was pulling away without a deal for Trulia so does the consolidation justify the sky-high price?
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