Shares of real estate site Zillow (NASDAQ:Z) finished up a sizzling 7% on Monday, and rival Trulia (NYSE:TRLA) bumped up 5% — without any seemingly catalytic company-specific news, though we did get news of some big-time optimism in the housing market.
Namely, Bill McBride, who operates Calculated Risk, recently forecast that housing starts will double over the next few years. Of course, while that would benefit both Zillow and Trulia, that news alone probably is not enough to spike the shares.
Another possibility is that fast traders are playing up the dot-coms for a quick move. Keep in mind that Zillow and Trulia plunged in early November, so this might be a filling of the gap on the charts.
That said, investors who look at the fundamentals should steer clear for now.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.