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Spencer Rascoff and team Zillow ringing the opening bell on Nasdaq in July 2011.
Spencer Rascoff and team Zillow ringing the opening bell on Nasdaq in July 2011.

Zillow is already growing like gangbusters, acquiring its biggest rival in Trulia and nearly doubling its office space in downtown Seattle.

But the online real estate powerhouse — currently valued at $5 billion on Wall Street — still has a lot of upside, according to one prominent hedge fund investor.

Speaking at an investor event in London, Caledonia senior portfolio manager Michael Messara said he thinks the company is headed toward an enterprise value of $50 billion.


That means the stock, now trading at $124 per share, is headed toward $770 in Messara’s opinion.

Australian hedge fund Caledonia certainly has a lot at stake in betting on Zillow. Caledonia remains the largest outside shareholder in Zillow, holding an 18 percent stake. It also is the biggest backer of Trulia, holding a 25 percent stake in the San Francisco company.

Bloomberg reports on Messara’s remarks, which were made at an investment conference in London. The stock picker reportedly said that Zillow will continue to rise given its strong lead in mobile, and best in class management team. He also thinks the company will follow the path of real estate leaders in other countries, where one dominant player emerges.

Zillow’s stock has defied critics ever since it went public in July 2011, soaring in its IPO and the continuing to gain steam. So far this year, the stock is up 53 percent.

Zillow co-founder Rich Barton often speaks about his desire to build big companies, noting at a GeekWire Meetup three years ago that it’s just as easy to bunt as it is to swing for the fences.

“I would argue that it is just as likely that you will succeed if you swing for the fences as if you bunt, and the outcome will be much more magical,” he said. “And, I have to say, being a part of something that you are swinging for the fences and you are trying to change the world, is an excitement that you just don’t get from bunting.”

Zillow's stock has soared over the years.
Zillow’s stock has soared over the years.
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