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What’s happening with Zillow?

Zillow CEO: We are a media company

(Click for video linked to a searchable transcript of this Mad Money segment)

If you've held Zillow for a long time, chances are you're pretty happy. Year to date the stock has gained more than 200%.

However, in early August, the bullish thesis was called into question when shares fell from $90 to $83 in a single session," Cramer said.

Then in September, questioned its business model and noted that senior executives have been selling the stock.

In a nutshell, Citron said the company had not made a "meaningful profit" in the seven years of its existence and they didn't see that changing any time soon.

It seemed as if the bears were on the brink of taking down this high flier. However, the bulls may have fight left, yet.

Tim Boyle | Bloomberg | Getty Images

Recent earnings showed revenues were up 68.7% year over year," Cramer said. "In fact, subscription revenues and ad revenues are growing like crazy."

"Also, billionaire investor James Packer has been betting heavily on Zillow, to the point where his fund now owns 9.4% of the company," Cramer added.

Those two metrics, Cramer said, are meaningful.

Cramer doesn't think bears really understand Zillow. That is, they view Zillow as a housing play and frame the story "as the ultimate fad connected to a rapidly fading business," he said.

That thesis could be catastrophic if Zillow bulls are really growth hounds, as Cramer suspects they may be.

If that's the case, then bulls regard Zillow in the same light as Yelp and LinkedIn, because "they have subscription revenues and ad revenues that are growing like crazy."

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Therefore, even if housing stumbles if Zillow can continue to show growth, there should be every reason for the stock to rally.

"I know the company's being valued at $3.7 billion" Cramer said. But in this market growth commands a premium, often times a sky-high premium.

Call Cramer: 1-800-743-CNBC

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