Time to take note of Homes.com’s rapid web traffic share gains
Real Estate
Gordon Haskett Research Advisors
While many investors have probably just focused on the Big 3 online real estate portals (Zillow, Redfin & Realtor.com), GHRA believes it's now time to focus on the Big 4 as Costar’s Homes.com has been aggressively growing its web traffic share. Key highlights from their report include: 1) Homes.com accounted for 10.4% of web traffic in Sep, +c.900bps Y/Y. 2) Homes.com's 44% paid mix last month represents a 25-point Y/Y increase, materially above the 1-point increase at both Z & RDFN and 2-point increase at Realtor.com. 3) Homes.com's paid clicks have grown at a significantly faster rate than non-paid clicks (17x vs. 5x).
Edition: 171
- 13 October, 2023
Fallen Angels: Sorting through the rubble
Short term pain, long term gain - three ideas where negative short term fundamentals are obscuring long term attractive businesses...
CoStar (CSGP) - No competition, plus headroom to increase prices. 2022 EBITDA margins will be ~27% vs. the 40%+ that the business should do as growth matures.
Etsy (ETSY) - Scaled, capital light, low SBC, and management team with a good history of execution. Take rates will rise longer term, thus revenue can compound faster than GMS.
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Edition: 131
- 18 March, 2022