Taking advantage of the growing online trend,
) 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
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
) 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
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
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