Zillow is like the phub of real estate. Real estate is bigger than the stock market. Doordash has tons of competition and a business model based on thin margins Zillow: revenue 4.2 Billion Market cap 8.78 Billion Doordash revenue 1.46 Billion Market cap 24.71 Billion You could argue that Doordash has more growth potential and less market penetration currently. But Zillow has tons of ways it could expand the platform and generate revenue too and is dominant. TC 0
Valuation is all over the place these days
Zillow got a lot of flak from management miss steps, but the core business is actually very valuable
Too bad there’s not an option to say neither company will exist in 5 years.
Zillow if fighting an entranced cartel (realtors). Not easy. DoorDash is fighting our collective ability to be lazy. Super easy. Both are doomed. Disrupting real estate is going to need a much bigger bully than Zillow or Redfin. And the gigworker economy will likely get heavily regulated in coming years for Doordash to grow this way.
This. Also with food costs skyrocketing for the next few years, people will drastically reduce their eating out and won’t want to pay a markup + a fee to have someone else do their shopping for them. If the recession gets deep and layoffs ensue, these effects will be exacerbated.
Which has better margins? Revenue doesn’t say a lot… both are just two applications one brings you food one hooks you up with houses. Also doordssh is international since it has acquired wolt which is number 1 in Europe
Neither has positive earnings. They both aren't very mature companies and are operating at a loss. If they started reducing staff Zillow would probably be able to have higher gross margins
You are confusing public market capitalization with book value.
Market cap is the value of all the share multiplied by the share price. It is a representation of what the market thinks a company is worth based on its current value and future returns. Book value is an accounting representation of current assets less current liabilities. I am saying the market capitalization of Zillow should be higher than that of Doordash based on it's potential for earnings in the future.
Why compare companies from 2 different industries? Both industries have unique demand, supply and market characteristics.
I get your point. I think both of these companies are cyclical and while there valuations have come down a lot, they are trading a totally different price to sales.
If you have ever worked with me you would know that I’m easily worth -$20 billion to any company.
Way less network effects with Zillow.
What's your reasoning?
More people using a delivery service attracts more drivers and restaurants. More drivers (faster delivery) attracts more users. The network is much more valuable when more people are using it. If you want to launch a new delivery app it's hard to get critical mass, no one wants to use it if there are no drivers or restaurants for it. But no drivers/restaurants want to use it either if there are no users. There is room for maybe 2-3 mature major delivery apps (maybe only 1). It's winner take all and this is what investors are betting on with doordash. That's not the case for real estate sites. It's easy to list your properties on 20 different sites. It's pretty easy (if not annoying) to search 20 different sites as a user. It's easy for a third party to aggregate results too. It's much easier to launch a new real estate listings site and there is room for many mature sites in the market. It's easier to differentiate and carve out a niche as well. A new site does not need many listings to be useful to a user if the listings that are on the site are exactly what the user is looking for.