[VIP] Zillow Q2/2019 Earnings: Going All In

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When Rich Barton took (back) over as CEO of Zillow earlier this year, I wrote a Red Dot and titled it, "The Return of the King." I didn't realize then that the king was not just a fighter, but a gambler. With giant brass ones. After the Q2 earnings results, I know that now.

Zillow's Q2 earnings came in more or less as I expected: huge spike in revenues, but an even larger spike in expenses, resulting in absolutely astronomical losses. Seriously. I had to find a way to format the percentages as I've never needed the thousands separator in percentages. But I needed it this quarter. Net loss widened by negative 2,227%? I mean... what?

Thing is, that number doesn't scare me, and I don't think it scares Barton and his team. I'm sure we'll see all kinds of takes on Zillow's latest results, and all of them will be reasonable. I think I'm generally a bull because of some specific detailed things I see, almost all of which I've been predicting for years... which could mean that there's some confirmation bias going on.

But this quarter tells me that Zillow under Rich Barton is going all in on iBuyer. That alone seems significant to me from an industry perspective.

Let's get into it.
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