Investors have looked to capitalize on the stay-at-home trend, but may be overlooking a find-a-new-home trend that could benefit a stock like Zillow Group Inc (NASDAQ:ZG), Loup Ventures founder Gene Munster said on CNBC's "Worldwide Exchange."
What Happened: The real estate environment could undergo a "fundamental shift," as many homeowners want to leave the crowded cities for less dense urban areas due to the COVID-19 pandemic, said Munster, a personal investor in Zillow.
The online real estate company is particularly well-positioned to capitalize on the trend given its simple Zestimate feature, he said.
Zillow leveraged its simple to use and accurate Zestimate feature to generate almost 200 million monthly active users in the U.S., Munster said.
By comparison, social media giant Facebook, Inc. (NASDAQ:FB) has 220 million monthly active users.
Why It's Important: Zillow's business extends beyond just capturing the sales lead revenue opportunity and advertising revenue, Munster said.
Zillow wants to "disassemble and then reassemble the real estate process."
One example includes Zillow itself acquiring homes to re-sell and "take some of the friction" out of the process, the Loup Ventures managing partner said.
What's Next: Big companies like Zillow that can take on the risk of buying houses represent a big opportunity potential for investors, Munster said.