Real estate stocks

Investors set aside in the fall of the housing market and rushed to take the actions of the real estate site Zillow on Wednesday, valuing the company at least $ 1.6 billion.Zillow Inc., which has never had a benefit, however, is another beneficiary of the strong investor demand for the latest crop of Internet stocks. Many recent market beginning to provide social networking, online gaming, or research. Zillow has tripled since its commercial debut on the Nasdaq Stock Market. Zillow had set a price of $ 20 for his actions Tuesday night. The shares rose as high as $ 60 before returning to close at $ 35.77 on the valuation of the Seattle-based company at about $ 950 million.

Weak housing market will not hurt Zillow list. Figures released Wednesday show that Americans are buying homes weakest pace for 14 years.

IPO Zillow following files Internet companies ranging from high-profile site daily specials Groupon Inc., the professional networking service LinkedIn Corp., with Zynga Inc. best known for online game "Farmville". While these companies generate a lot of Internet IPO euphoria, but the attention they receive on their first day of trading is not guarantee of success. Pandora Corp., an online radio service, has seen its share fluctuates widely, since the public is 14 June Part of worms are now trading at $ 17.60, 10 percent above their offering price.

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"Investors are very excited to business models that combine the Internet at the center of the disc and mobile applications," said David Menlow, president and founder of research firm IPOfinancial. He added that there are a lot of pent-up demand for promising companies, the overall market is boring.

Founded in 2004, Zillow provides online lists of more than 100 million homes that are either for sale or rent. A feature called "Zestimate" to help you estimate the value of the property, so people can see how the houses in the neighborhood of the desired neighborhood_or-worthy.

The Zestimate has drawn criticism from owners across the country who suddenly had the value of their homes - and what they bought it - easily accessible by anyone with an Internet connection. Zillowcalculates century, with the available data, the majority of the public, and will enter into a formula that takes into account the hundreds of details such as number of bathrooms or a rooming house or where he is. The site also offers personal mortgage rates and housing advice. The company has never made a profit, but revenue rose 74 percent in 2010 to $ 30.5 million.

Zillow makes money from advertising by real estate professionals and mortgage companies and brands, such as a telephone, or insurance companies. Spencer Rascoff, Zillow than 35 years, managing director, said the volatile real estate market has really helped the company increase its advertising revenue. This is due to the accelerated transfer of more expensive online advertising network in newspapers and elsewhere.

In the first quarter of this year, Zillow loss fell to U.S. $ 826 000 from 2.8 million in the same period last year and revenue doubled to $ 11.3 million. The company reported a loss of $ 6.8 million last year.

Although investors bet on non-profitable firms, as yet, Zillow, experts say the current stocks run Web is not the bubble in the 1990s and early 2000. There are far fewer companies in the stock market, and those who have been around longer and have established business models. It was not always the case in 90 years. Menlow said then, investors did not even look at the companies in which they were caught and only asked "how many shares do I get?". He noted that investors become more cautious in those days.

Like LinkedIn, Groupon and Zynga, Zillow is the first to exploit the market, as far as IPOs go, its niche. This, he said Menlow, usually behind a large market share, even if the company's business model is not so unique, and could be replicated in the competition. Internet IPO will hit the sweet spot for investors, Menlow said, adding that, although he would like to distinguish between the companies, "I do not know if investors are willing to do so at this stage."

It is the business model behind the company billions of dollars of assessment is another matter.

"At this point, investors think they know better than the analysts," said Menlow.

Including a private sale of shares 275,000 shares, Zillow raised $ 74.7 million in the IPO. The company has offered little other reason is more likely to debut in the market.

Also Wednesday, SkullCandy Inc., the manufacturer of wired headset for iPhones and other devices, also made public. The company's stock price to $ 20. On Wednesday afternoon, shares were trading slightly above $ 20.12 after reaching $ 23.40.