According to CNBC, investors are misclassifying Zillow (Z) in the stock market and often wrongfully viewing it as a real estate trend that will fall if the housing market stumbles. But they may be betting against a hot Internet growth stock.  CNBC explains:

"The longs that embrace the stock, are growth hounds who love internet stocks broadly. They regard Zillow in the same light as Yelp and LinkedIn, because they have subscription revenues and ad revenues that are growing like crazy," Mad Money host Jim Cramer said.

"I know the company's being valued at $3.7 billion, yet it only has $150 million in revenues and no earnings," Cramer said. But in this market, growth commands a premium, often times a sky-high premium,” Cramer said.