Zillow chief Spencer Rascoff defends business after stock falls 26 percent: VIDEO

New York /
Nov.November 07, 2012 12:30 PM

In the last week, Zillow’s share price has fallen more than 26 percent, hitting $27.49 today, after the real estate listings site disclosed a much bleaker earnings forecast for the upcoming fourth quarter.

But Zillow CEO Spencer Rascoff told CNBC that the company remains poised to take advantage of the high volume of real estate advertising migrating from print sources to website and mobile platforms. “Don’t buy Zillow [stock] merely as a way to play the housing upturn, although we benefit from a housing upturn,” Rascoff said. “Buy Zillow if you believe that consumers are going to access more and more real estate information on mobile, where we’re the leader, and on the web, where we’re clearly the leader.”

Although a CNBC news anchor noted that Zillow had lost a quarter of its market capitalization over the last week, Rascoff insisted that his company has retained its value.

Zillow is the largest real estate site in the 20 biggest cities in the U.S., and users have viewed 1 billion homes on Zillow’s mobile application so far this year, Rascoff said. But 99 percent of agents’ advertising budgets are devoted to other websites and offline venues, he said.

“Someone looking at Zillow on a smartphone is actually more likely to contact a real estate agent – who pays us [on] a subscription basis – than someone looking at the same page on the desktop,” Rascoff said. “So the mobile migration is a big boon to our business, unlike so many other Internet companies.”

Additionally, Rascoff noted that the company’s data suggest U.S. housing prices have bottomed out and are set for a 2 percent increase over the next year.

Zillow has been on something of an acquisition tear since the spring, buying up mortgage software company Mortech, home search service Buyfolio and online rental management firm RentJuice. [CNBC] –Leigh Kamping-Carder


Related Articles

arrow_forward_ios
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Spencer Rascoff explains Zillow’s house-flipping strategy
Spencer Rascoff explains Zillow’s house-flipping strategy
Spencer Rascoff explains Zillow’s house-flipping strategy
Placeholder image
Zillow to pay $50M for StreetEasy
Zillow to pay $50M for StreetEasy
Zillow economist Nicole Bichaud (Zillow, iStock)
Where have home values grown more, suburbs or cities? The answer may surprise you
Where have home values grown more, suburbs or cities? The answer may surprise you
(iStock / Photo illustration by Priyanka Modi for The Real Deal)
Renters of color saddled with more upfront costs
Renters of color saddled with more upfront costs
StreetEasy general manager Caroline Burton (StreetEasy, iStock)
StreetEasy to ban listings, rather than agents, that break its rules
StreetEasy to ban listings, rather than agents, that break its rules
Jessie Smith, general manager, Opendoor (Opendoor, iStock)
Homecoming: Opendoor tries iBuying in Bay Area
Homecoming: Opendoor tries iBuying in Bay Area
Uncertainty reigned over real estate stocks in January
Uncertainty reigned over real estate stocks in January
Uncertainty reigned over real estate stocks in January
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...