The tax and law market have many similarities. Funny enough, four of the executives for LegalZoom had previous experience at Intuit. It reminds me of the same position Intuit ( INTU) was in with TurboTax. This barrier especially exists with younger citizens who have never contacted or interacted with a lawyer before. LegalZoom exists to break this barrier of entry. Just the thought of having to contact a lawyer that will be attached with billable minutes is nauseating. Frankly, it is daunting for a large portion of the population. The case for LegalZoom's growth is easy to make. Being able to simplify complex processes within law is where their value lies.

That is how their mission statement begins. Unfortunate for those who got in early, but intriguing for those that have been patiently waiting on the sidelines.ĭemocratize Law. Overall, LegalZoom is down almost 50% since its IPO pop in June. We saw this recently with a 16% plunge in one day post earnings. This breeds heightened volatility around earnings. What separates LegalZoom from other tech stocks is the revenue mix and unpredictability of volume. On the flip side, that growth is accompanied with large amounts of marketing expenses and shareholder dilution. Like many tech stocks, LegalZoom is high margin with impressive growth rates. ( NASDAQ: LZ) is an exciting company with a disruptive business model.

Legal zoom stock