The Zillow IPO comes on the heels of a few other recent dot-com IPOs, LinkedIn, Pandora and soon, Groupon most notably. Clearly Wall Street has blocked any memory of the dot-com crash of the late 90′s from their minds.
This latest run on dot-com companies is not surprising as Wall Street looks for a way to regain the luster of their mortgage backed security days where they single-handedly brought the real estate and housing finance industry to their knees with uncontrolled exuberance and speculation.
How ironic that the sector of our economy who is responsible for creating the biggest housing bubble in history, by a mile, and than seeing it crash and burn like nothing before, should be rallying around a real estate dot-com play.
Honestly, I hope this is the beginnings of a turn for the better for the real estate industry and all the great people I know who make their living in real estate. Unfortunately, having watched the NASDAQ plummet as a result of the dot-com bubble and having worked in the real estate industry through the most incredible boom and bust we will see in our life time, I can only say, I wish you well Zillow as I watch your public future unfold with cautious optimism.
To see an amazing graph illustrating the real estate boom and bust that took place over the past 11 years, thanks to Wall Street’s infinite wisdom and complete disregard for the investor, see graph #4 in our recent post, “5 Cool Real Estate Infographics“