Zillow Faces Competition and Legal Risks, Spruce Point Warns Despite Recent Growth
• Spruce Point Capital says Zillow's business is saturated and faces competition that could cause its share price to decline 40-60%
• Spruce Point claims Zillow's web traffic and revenues are declining as its core business model reaches saturation
• The firm says emerging platforms like Homes.com could take visitor share from Zillow, pressuring its Premier Agent business
• Legal actions alleging agents inflated commissions could lead to less revenue for Zillow long-term
• Zillow reported strong revenue growth in its latest quarterly results and forecasts continued growth, though its CEO cites progress in diversifying the business