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Trulia’s Latest Crazy Move Is Way Up

The volatile stock is soaring in today's trading on good earnings


Trulia (NYSE:TRLA), a top real estate search engine, is a magnet for volatility. When the company came public in September 2012, the stock surged 41% on its first day of trading. Then on its third-quarter earnings report, the shares plunged nearly 30%.

Today, Trulia kept up its wild ways, with the stock up 23% to $29.24 (the IPO price was $17). The company reported its fourth-quarter results, which showed the business continues to grow at a hefty pace.

Why Junk Is a Better Bet Now Than Stocks
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Revenue soared by 76% to $20.6 million, which beat the Street’s expectation of $19.1 million. There was a loss of $1.6 million, or 6 cents a share, down from $2.1 million, or 30 cents a share in the same period last year. On an adjusted basis — accounting for one-time items — the loss was 3 cents, which compared to the consensus estimate of 2 cents.

With the real estate market rebounding, Trulia continues to see gains in traffic. Unique monthly users jumped 50% to 23.6 million. As should be no surprise, a big boost came from mobile, with the number of unique visitors on handheld devices up 119% to 5.8 million.

For the next quarter, Trulia forecasts revenues of $20.8 million to $21.2 million. The consensus estimate was for $19.3 million.

To help keep up the growth, Trulia has been expanding its platform into other categories, such as rentals and mortgages. For example, the company recently struck a partnership with Primedia’s apartment guide, which should provide a nice boost to traffic.

However, investors should remain cautious. Again, the stock has proven to be quite volatile. So, it’s a good bet there will be more opportunities to get shares at a lower price at some point.

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.

Article printed from InvestorPlace Media,

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