Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Trulia: Home Buying Goes Online

By

Trulia is one of several upstart online real estate websites that have grown up since the housing market went bust, observes Mike Cintolo of Cabot Top Ten Trader.

PrintPRINT
Taking advantage of the growing online trend, Trulia (NYSE:TRLA) connects home buyers with real estate agents via the company's marketplace websites. And business is booming.

Marketplace revenue, which consists of premium subscriptions for real estate agents, made up 70% of Trulia's total revenue in the first quarter. What's more, this revenue source was up 100% year over year in the most recent quarter.

What's in it for the agents? They can get on the site for free to establish a profile and contribute content, but paying for a premium subscription allows them to promote their listings in Trulia's search results and target mobile users, resulting in higher-quality leads.

The balance of Trulia's revenue comes from advertising, which is driven by traffic. During the first quarter, ad sales rose 91%, as users ballooned 51% to 31.4 million unique monthly users.

Trulia's biggest difference, versus competitors like Zillow (NASDAQ:Z) and Redfin, is likely its user-generated content.

The company currently has the largest database of real estate-related, user-generated content in the business, which helps its Web site generate higher traffic and generally attracts more buy-ready customers.

Whatever the reason, Trulia is growing rapidly, and while the company is still small compared to traditional real estate players, it has big potential. Earnings will be out July 31.

Technically, TRLA went public right when the market was peaking in September last year, and then plunged from $26 to $15. Following a short basing period, TRLA rocketed to an all-time high of $38 before retreating sharply to support at its 50-day moving average.

TRLA looked to breakout following its Q1 earnings report in May, but the strength was short lived, and the stock spent the next several weeks grinding sideways.

The situation changed once again at the beginning of July, with TRLA reclaiming its 50-day trendline and soaring past former resistance near $35.

The shares are now taking a breather, consolidating above $35, and their 10-day moving average is a bit overextended, so buy on dips.

Editor's Note: This article was written by Mike Cintolo of Cabot Top Ten Trader of MoneyShow.

Below, find some more great investing and trading content from MoneyShow:


GE: Back From the Brink

An In-Depth Look at 5 Tech Giants

It's Time to Stop Listening to Ben Bernanke


Twitter: @TopProsTopPicks
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE