Saul I am overweight on Z, but I was surprised that you hold Z. I know that you much prefer profitable companies. Can you share your thinking?
Saul I am overweight on Z, but I was surprised that you hold Z. I know that you much prefer profitable companies. Can you share your thinking?
Flygal,
I do much prefer more profitable businesses, but I took a small position in Z. It was even smaller, but even after I added after these earnings it’s only my 21st biggest out of 25. It is profitable, by the way, just not very. I can get a grasp on the business, see how they are dominating their market and growing market share, and I added because they were up 50% to 75% in every category this quarter, and over 100% in adjusted EBITDA. They made it clear they are spending on building out their business. Okay with me for a small position.
Saul
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I like the class of businesses that started as internet businesses. Things Like OPEN, YELP, Z, BOIC… were built to harness the low costs of doing business over the internet. I think Z is a useful tool for buyers, sellers and agents.
I gave up my subscription to my local paper this week, they had dwindled to very few pages and they wanted me to renew for a annual cost of $480. It is so much easier to begin as an internet business than to try to keep a business alive as you transition to internet.
I think retail is in an inexorable decline. My family rarely goes to a retail store for anything. Restaurants yes, but stores, why bother? I wonder what all the retail space will convert to?