Zillow Group stock surges to record $10.5B market cap

Momentum reflects Wall Street's confidence in the company and RE tech. But with Premier Agent revenue growth slowing, Zillow will need to keep innovating.

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Dive into the latest Technology affecting RE, July 17, 2018

Following a strong fourth quarter in which Zillow Group posted a record $1 billion in annual revenue, the Seattle-based real estate tech company continues to soar on Wall Street, surging 10 points since March 1 and tallying a $10.5 billion market cap for the first time since going public. The forward momentum, which culminated Tuesday with afternoon trading at $57 a share, reflects growing investor interest in real estate technology, a renewed focus on small- and mid-cap businesses and Wall Street’s widening clarity on Zillow’s overall strategy, analysts said. “They’re showing that the business model can be profitable,” said Mike DelPrete, a real estate technology expert who has advised startups and portals as an independent consultant in Colorado. “Operating their model in the U.S. is expensive -- I mean, they’re spending a lot of money -- but what they’ve shown is that it can be profitable and that they can grow revenues faster than expenses -- which, from an invest...