Zillow Offers Could Mark A Sweet Deal For Investors
Shares of Zillow have been in a well defined downtrend since early 2018, but a new program by Zillow can juice shares higher in the long run. Zillow Offers is Zillow's new product offering. In select markets, the company will outright buy your home and then flip it for a profit. While this adds a significant amount of risk to the stock and makes it even more exposed to the overall economy than it already was, it is an incredibly smart move long term. Why? One word: millenials. Two things are certain: Millenials are the most populated generation in America right now, with more than 80 million people, and they are in the prime sweet spot of graduating from their student loan debt to mortgage debt. Millenials also hate dealing with people. They prefer shopping online over going into a physical store, they prefer robo advisors over human advisors, they prefer texting over phone calls and the list goes on and on. Zillow is in the sweet spot of offering a home for sale to millenials with minimal human interaction. Technically, two price objectives come to mind for shares of Zillow: $60 and $86, representing potential upside of 50% and 120% respectively. These objectives are the 261.8 and 423.6 fibonacci extensions derived from the highs of 2015 and the lows of 2016. Happy investing and happy home buying you hoards of millenials!