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Zillow Group Stock Turbocharged By High-Spending ‘Super Agents’

Zillow Group ( Z ) stock jumped on Tuesday after the leading online real estate listings company got a price target boost and rating upgrade from RBC Capital Markets, which cited strong online traffic trends. Zillow stock was up almost 3% in afternoon trading in the stock market today , near 24, off earlier highs of the session. RBC upgraded Zillow to outperform from sector perform. The investment bank increased its price target on Zillow stock to 34 from 21. Zillow holds an IBD Composite Rating of just 46 out of a possible 99 at moment. The stock has been trading above its 50-day moving average since late February, but by Tuesday afternoon it was only at the level where it closed 2015. RBC analyst Mark Mahaney wrote in an industry report on Tuesday that 40% of agents in their latest survey indicated they would increase their spending on Zillow, compared to 34% on Realtor.com and 33% on Zillow-owned Trulia. The percentage of real estate agents who advertise online using Zillow rose to a record-high 38% in 2016, up from 27% a year earlier and 32% in 2014, according to RBC’s 4 th Annual Online Real Estate Agent Survey, according to Mahaney. “Trulia’s share slipped modestly (29% from 32% in 2015), while Realtor.com maintained a leading 50% position,” Mahaney said. Zillow also scored well with high-spending “super agents,” he said, with Zillow’s share of agents who shell out more than $500 per month in online advertising coming in at 57%. “Further, a large majority (62%) of $500 monthly spenders plan to increase spend on Zillow,” Mahaney said. Seattle-based Zillow completed its $2.5 billion purchase of top competitor Trulia in February 2015. The union put the two most-visited real estate websites under the same ownership and formed the Zillow Group in a move designed to expand reach, forge efficiencies and cut costs. Both the Zillow and Trulia websites remain in operation and attract homebuyers and renters, as well as real estate agents who pay to advertise alongside the home listings on the sites. Move Inc. is the parent of rival online real estate site Realtor.com, which is an official website of the National Association of Realtors. Media empire News Corp. ( NWS ) bought Move in 2014. New ad products, including video ads, could bring $40 million to $90 million to 2016 revenue, JMP Securities analyst Ronald Josey wrote in an industry research report on Oct. 21, 2015. The new ad products “can drive pricing gains into 2017,” he said. A record high 44% of U.S. buyers found their home using the Internet in 2015 vs. 43% in 2014, said RBC, citing National Association of Realtors trade group research.

Tesla Up 20% This Month: What Does Short Seller Citron Think Now?

Loading the player… With Tesla Motors ( TSLA ) now trading at its highest levels this year, Citron Research’s short position in the electric-car maker’s stock has not been successful so far. Citron said on March 1 that Tesla had “supply AND demand problems,” which “should take down” the stock to 100 by the end of the year. Shares are currently trading around 235. Shares reversed fractionally higher in light turnover on Tuesday, building on its seven straight daily gains. Citron sent out its tweet one session after the stock hit resistance at its 50-day line. But Tesla was able to retake that level soon after and recently recaptured the 200-day line too. The stock has risen about 23% since the Citron tweet. Other Citron shorts, including GoPro ( GPRO ), Ambarella ( AMBA ) and Mobileye ( MBLY ), have not fared as well. GoPro is trading 80% below its 52-week high, while Ambarella is 68% below its 52-week peak. Mobileye is about 44% below its high reached last August. Tesla Unveiling Model 3 Soon Tesla shares could be getting a boost from the upcoming launch of its mass-market Model 3, which will be unveiled next Thursday. But with gas prices still at very low levels and Tesla struggling to ramp up production, some remain skeptical. Many of the top automakers are rushing out their own EVs. Tesla’s $35,000 car is set to compete with mainstream car brand offerings, most notably the Chevy Bolt from General Motors ( GM ). Tesla has made its mark in the luxury electric car space and has been a leader in implementing autonomous driving features with its Autopilot software. Other notable companies working on self-driving cars include Alphabet ( GOOGL )-owned Google and China’s Baidu ( BIDU ). Even Apple ( AAPL ) is reportedly doing work on its own car, dubbed “Project Titan.” Alphabet, Baidu and Apple shares were up a fraction Tuesday, while General Motors edged down.

Apple Won’t Shake Up Alphabet, Android In Global Mobile Market

Apple ( APPL ) and its new suite of products won’t shake up Alphabet ( GOOGL )-owned Google Android, said Monness, Crespi, Hardt in an industry update Tuesday. Monness Crespi analyst James Cakmak called Apple’s new product launches that were announced Monday — items including a 4-inch iPhone, a lower-priced Apple Watch and iPad Pro, and updates to the company’s iOS and Apple TV — “lackluster at best.” While Apple’s new iPhone comes with a cheaper $399 entry point, “we believe it does little to disrupt Android’s stronghold on the global mobile market,” wrote Cakmak.  “As of 2015, Android commands about 80% of the market vs. iOS at 15%, per IDC. To be sure, some will prefer the smaller form factor, but as far as changing the global mix, we see little potential shift, especially noting the influx of supply when iPhone annual upgrade plans come up for renewal.” Apple also is doing little to impact Google’s efforts in the Internet of Things, Cakmak said, with the actual front-runner so far turning out to be Amazon.com ( AMZN )‘s  Alexa voice software — Amazon’s answer to Apple’s Siri, Google Now and Microsoft’s Cortana voice-activated personal digital assistants. And since “Apple is actually ahead of Google in encryption (due largely to the open-sourced nature of Android),” said Cakmak, that means “Apple fights the fight while Google can adapt accordingly.” He pointed to the FBI’s disclosure on Monday that it may not need Apple’s assistance after all to unlock an encrypted iPhone used by one of the San Bernardino, Calif., terrorist attackers, since investigators might have found another way to access it .  “Should this hold, it would in tandem support Android’s encryption efforts,” Cakmak said. New iPad Said Still Behind Microsoft Surface On the tablet front, Cakmak said, “While the iPad Pro is looking to replace the laptop, we believe Microsoft’s Surface continues to hold an edge despite the latest updates from Apple.” Some investment banks, including Raymond James , are also expecting Alphabet’s Google division to become more competitive in cloud computing. As Google prepares to hold its cloud user conference, GCP Next 2016, in San Francisco starting Wednesday, Cakmak noted, “With Diane Greene making her first keynote in her senior vice president role, we expect to come away with a better understanding of Google’s angle in either placing more emphasis on the enterprise or storage. This can also provide better clarity into whether Microsoft or Amazon’s AWS should feel greater pressure.” Monness, Crespi maintains a buy rating and 900 price target on Alphabet stock. Alphabet stock was down a fraction, near 759, in midday trading in the stock market today . Alphabet “seemed to be in the shadows of Facebook in the first half of last year,” Rosenblatt Securities analyst Martin Pyykkonen wrote in a research report Tuesday. But Alphabet has gone on to outperform the market and finish “with a full year gain in the same range as Facebook, which was especially driven after new CFO Ruth Porat started at Alphabet in mid-2015.” Pyykkonen said Alphabet’s core business segments “are benefiting from most of the same key growth drivers as Facebook, including mobile, display and video ads, in addition to the longstanding core search advertising business. There has been increasing media attention on Facebook vs. Alphabet’s YouTube in terms of video advertising and revenue growth potential. We think there is room for both players within our current estimates through next year for each company, and video delivery is likely to remain different for each company.” Apple stock was up nearly 1% in midday trading Tuesday, near 107. Amazon stock was up a fraction, near 558.