Fundamental Change Happening In Zillow Inc (Z), Twitter Inc (TWTR), Google Inc (GOOGL)


In a discussion with Personal Capital CEO’s Bill Harris on Bloomberg Surveillance, have been addressed various market developments especially the fundamental changes happening in the technology industry.

Zillow Inc

The discussion especially focused on the developments seen in companies like Zillow Inc (NASDAQ:Z), Twitter Inc (NYSE:TWTR), Google Inc (NASDAQ:GOOGL).

Mr. Harris noted widespread adoption in the technology industry as markets become mainstream.

“ What is different is we have got adoption throughout the entire company – throughout the entire country and throughout the world, so the markets are mainstream” said Mr. Harris.

The discussion on Zillow Inc (NASDAQ:Z) addressed the valuation of the company of which Mr. Harris stated that the valuation of the real estate-related information company was nothing out of the ordinary.

Stressing on the fact that Zillow Inc (NASDAQ:Z) valuation is a usual phenomenon, Mr. Harris recalled his tenure on the board of Success Factor that he said they sold to the software giant SAP AG (ADR) (NYSE:SAP) for 10.4 times forward revenue. He cited the transaction as an example of the fundamental change happening in the technology industry today.

SAP is the largest software company in the world today, according to Mr. Harris, noting that the company is on-premise and needs to go to the cloud to explore new and bigger opportunities.

Twitter management

Moving from Zillow Inc (NASDAQ:Z), Mr. Harris tackled Twitter Inc (NYSE:TWTR) especially on the management stability of the social network company.

“As a company that is growing so fast, there are all sorts of things that happen within the organization  within the managers’ structure.”

However, he added that Twitter Inc (NYSE:TWTR) has to keep trying because what is happening in the company is not unusual.

Google and wearable innovation

Discussion about Google Inc (NASDAQ:GOOGL) focused on the company’s wearable  device Google Watch. Mr. Harris demonstrated how the device helps with various functionalities such Internet search, email and personal communication.

Disclosure: none