Zillow shares are traded 80% off their peaks in 2021. The company owns most popular real estate marketplace in the United States. Its shares were affected by a slowdown in real estate sector together with a correction in high-tech sector stocks. However, this slowdown could be considered seasonal and would hardly affect Zillow’s business in the long run.

The company has boosted its revenue by 200% to $4.26 billion in the first quarter of 2022. Its business was affected by a sell of iBuying service and now the company is clearing its balance from private houses within this service. Outside this segment the revenue from its key IMT (Internet, Media and Technology) segment that covers sales of marketing services as well as software and other technology solutions grew by 10% year-on-year to $490 million, missing 14% that was recorded in the same period a year before. “Premier Agent” services inside IMT or marketing services to real estate agents rose by 9% to $363 million, also slowing down compared to Q1 2021. The real estate segment was the mostly affected as the revenues dropped by 32% year-on-year to $46 million after interest rates hike in the United States.

However, after the company sold iBuying service the EBITDA margin improved to 45% versus 38% a year before. The revenue is forecasted to grow to $5 billion by 2025. With the current margin EBITDA may be up to $2.3 billion. Literally, every American that was looking to buy an apartment or rent one reached for one of Zillow’s websites in 2021. Number of visits topped 10.2 billion in 2021. This is an excellent opportunity to increase monetization. The company is testing the mortgage and is planning to introduce insurance services, renovation, movers services and others.

The mid-term target price is at $67 per share.