The stock has been boosted because of excitement over the company’s foray into direct home buying and selling. The stock surged after first-quarter earnings showed that Zillow’s new business, called Zillow Offers, brought in higher-than-expected revenue in the first three months of 2019.
Full Answer
Why is Zillow’s stock price going down?
The stock market is forward-looking, meaning the boom in the housing market may have already been priced into Zillow’s share price long ago. At the same time, investors may already be discounting Zillow’s recent performance because the market is already pricing in an inevitable future decline in housing sales.
Should you buy Zillow Group (Zill) stock?
5 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Zillow Group in the last year. There are currently 2 hold ratings and 3 buy ratings for the stock. The consensus among Wall Street analysts is that investors should "buy" Zillow Group stock. View analyst ratings for Zillow Group or view top-rated stocks.
Which insiders have sold Zillow Group company stock in the last year?
Company insiders that have sold Zillow Group company stock in the last year include Aimee Johnson, Allen Parker, Arik Prawer, Bradley D Owens, Dan Spaulding, David A Beitel, Erik C Blachford, Errol G Samuelson, Gregory B Maffei, Jennifer Rock, Jeremy Wacksman, Lloyd D Frink, Richard N Barton, Stanley B Humphries, and Susan Daimler.
Is Zillow making money or losing money?
Sure, Zillow's business operated at a loss, but it was solely because of these home sales (which were expected to lose money). In the company's core business, revenue grew 14% year over year and came in above analyst expectations.
Why is Zillow stock so high?
Interest rates dropped, and people in large, expensive cities moved out to the suburbs and smaller towns. As the housing market got more competitive, Zillow's stock soared by nearly 10x from a low of $18.65 to a high of $112.21.
Is Zillow a good stock to buy now?
Zillow is still a great company The investment thesis has changed, but instead of being a moonshot with iBuying this is now a solid growth tech stock, and that may be a safer place for investors to be long-term. Travis Hoium owns Zillow Group (C shares).
Why did Zillow stock jump?
Zillow Stock Leaps Because It's Selling the Homes It Bought and Buying Back Shares. Zillow stock jumped after the real estate technology company updated investors on the closure of its homebuying program and authorized a share buyback.
Will Zillow rebound?
Zillow says that it expects inventory levels to bounce back to pre-pandemic levels sometime in 2024. That's also the year that first-time homebuyers are finally expected to rebound to 2019 levels.
Is Zillow growing?
Zillow forecasts 14.9% growth over the next 12 months. 6.09 million existing home sales are expected in 2022, according to our latest forecast, a 0.5% decrease from 2021.
Is Zillow stock a buy 2022?
Is Zillow Stock a good buy in 2022, according to Wall Street analysts? The consensus among 13 Wall Street analysts covering (NASDAQ: ZG) stock is to Hold ZG stock.
Who owns Zillow stock?
The Vanguard Group, Inc.Top 10 Owners of Zillow Group IncStockholderStakeShares ownedThe Vanguard Group, Inc.12.96%23,327,202Independent Franchise Partners LL...5.88%10,578,200BlackRock Fund Advisors3.65%6,577,100Southpoint Capital Advisors LP2.78%5,000,0006 more rows
Why is Zillow dropping?
Zillow shares plummeted 25% on Wednesday, after the company announced plans to exit the home-flipping business because of an inability to accurately predict housing prices.
Why is Zillow group down?
Zillow Group Inc. blew away revenue expectations for the first quarter Thursday, but reflected the uncertain future for the real-estate industry with a disappointing forecast, pushing shares down in after-hours trading.
Will Zillow ever recover?
Analysts anticipate that Zillow's revenue will grow by another 97.44% by December 2021 and 50.25% in 2022. Finally, a quarterly operating income margin of 4.99% shouldn't be overlooked as the company was enduring operating losses a year ago.
How much cash does Zillow?
As you can see below, at the end of December 2021, Zillow Group had US$4.84b of debt, up from US$2.28b a year ago. Click the image for more detail. However, because it has a cash reserve of US$3.13b, its net debt is less, at about US$1.71b.
Will construction costs go down in 2024?
That brings us to the next phase, a hypersupply period where builders overshoot the mark and wind up with too much new construction, at which point prices plummet and a recession sets in. The good news (for existing homeowners) is that according to this theory, we won't see another home price peak until around 2024.
Should I buy or sell Zillow Group stock right now?
3 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Zillow Group in the last twelve months. There are curren...
What is Zillow Group's stock price forecast for 2022?
3 brokers have issued 1-year price objectives for Zillow Group's shares. Their forecasts range from $39.00 to $130.00. On average, they expect Zill...
How has Zillow Group's stock performed in 2022?
Zillow Group's stock was trading at $63.85 at the beginning of the year. Since then, Z shares have decreased by 44.5% and is now trading at $35.44....
When is Zillow Group's next earnings date?
Zillow Group is scheduled to release its next quarterly earnings announcement on Thursday, August 4th 2022. View our earnings forecast for Zillow...
How were Zillow Group's earnings last quarter?
Zillow Group, Inc. (NASDAQ:Z) issued its earnings results on Tuesday, May, 4th. The financial services provider reported $0.25 earnings per share (...
What guidance has Zillow Group issued on next quarter's earnings?
Zillow Group updated its second quarter 2022 earnings guidance on Monday, May, 23rd. The company provided earnings per share (EPS) guidance of for...
Who are Zillow Group's key executives?
Zillow Group's management team includes the following people: Mr. Lloyd D. Frink , Co-Founder, Exec. Chairman & Pres (Age 57, Pay $604.56k) ( Li...
What is Rich Barton's approval rating as Zillow Group's CEO?
141 employees have rated Zillow Group CEO Rich Barton on Glassdoor.com . Rich Barton has an approval rating of 95% among Zillow Group's employees....
Who are some of Zillow Group's key competitors?
Some companies that are related to Zillow Group include MercadoLibre (MELI) , MSCI (MSCI) , Global Payments (GPN) , eBay (EBAY) , CoStar Group...
The real estate tech giant just disappointed investors in a big way
Matt is a Certified Financial Planner based in South Carolina who has been writing for The Motley Fool since 2012. Matt specializes in writing about bank stocks, REITs, and personal finance, but he loves any investment at the right price. Follow him on Twitter to keep up with his latest work! Follow @TMFMathGuy
What happened
The stock market was little changed on Wednesday morning, but real estate technology company Zillow ( NASDAQ:Z)( NASDAQ:ZG) was a big underperformer. As of 10 a.m. EDT, Zillow's stock was down by about 17%, and this is on top of a multi-day losing streak for the stock.
So what
Zillow released its third-quarter earnings Tuesday afternoon, but it isn't the latest numbers that are causing today's plunge.
Now what
It's certainly understandable for investors to be disappointed, as something like this can be a thesis-buster. After all, I personally bought Zillow shares because of the long-term potential of its iBuying business.
Topline
Shares of digital real estate marketplace Zillow tumbled nearly 20% on Wednesday morning, a day after the company announced in its earnings results that it would shutter its home-flipping business due to the “unpredictability” of the housing market.
Key Facts
Zillow’s stock fell nearly 20% to around $69 per share by midday on Wednesday, hitting its lowest point in the last 12 months of trading.
Key Background
Zillow reported third-quarter revenue of $1.74 billion—lower than the $2 billion expected, with a loss of 95 cents per share (analysts were expecting a profit of 16 cents per share, according to Refinitiv).
What To Watch For
Although Wall Street analysts have recently been downgrading Zillow stock and slashing share price estimates, famed stock picker Cathie Wood of Ark Invest recently added to her investment in the digital real estate company. The investor bought 288,813 shares of Zillow, worth roughly $25 million, on Tuesday for her flagship ARK Innovation fund.
What is Zillow Group?
Zillow Group, Inc. engages in the provision of real estate and home-related information marketplaces on mobile and the web. It operates through the following segments: Internet, Media & Technology (IMT), Homes and Mortgages segment. The IMT segment includes premier agent, rentals and new construction marketplaces, as well as dotloop, display and other advertising and business software solutions. The Homes segment includes Zillow Group's buying and selling of homes directly. The Mortgages segment includes advertising sold to mortgage lenders and other mortgage professionals, mortgage originations through MLOA and the sale of mortgages on the secondary market, as well as Mortech mortgage software solutions. The company was founded by Richard N. Barton and Lloyd D. Frink in December 2004 and is headquartered in Seattle, WA.
What is the Z symbol on Zillow?
Zillow Group trades on the NASDAQ under the ticker symbol "Z."
What is the P/E ratio of Zillow?
The P/E ratio of Zillow Group is -62.41, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.
Does Zillow pay dividends?
Zillow Group does not currently pay a dividend.
Is Zillow suspending purchases?
After acquiring over 3,800 properties in Q2 2021, Zillow is suspending the purchases for the remainder of the year. The market didn't take this news kindly as the stock closed 9.37% down for the day.
Is Zillow a high P/E company?
The Zillow Group maintains its high P/E on the strength of its forecast growth is higher than the broader market. Still, the real estate market is arguably peaking, and it is the question of whether the company will keep those growth prospects once the inevitable downturn arrives.
Is Zillow Group doing better?
Zillow Group could be doing better as it's been growing earnings less than most other companies lately.It might be that many expect the uninspiring earnings performance to recover significantly, which has kept the P/E from collapsing.
A Real Estate Unicorn Grows in Bellingham
Despite the Zillow news, entrepreneurs are apparently still bullish on real estate tech. Place, a startup based about 90 miles north of Seattle, landed $100 million in Series A funding based on a $1 billion valuation . The company targets top real estate agents with a platform that allows brokers to easily share info with prospective buyers.
Bits and Bytes from Satya Nadella, Wayfair, and Pure Watercraft
Microsoft’s CEO ducks the new capital gains tax in Washington, selling half of his Microsoft shares before it takes effect. Move over, Amazon: another major e-commerce brand is coming to town after this holiday season. And GM invests in a local electric boating startup.
Does Benzinga's take on stock growth?
Benzinga’s Take: Stock price, earnings, revenue and other quantifiable fundamental metrics grow over time and can continue growing indefinitely . However, valuation ratios, such as earnings and sales ratios, should theoretically remain relatively stable over time, even as a company’s business grows.
Is Zillow stock up in 2020?
It appears the stock already priced in the last year's housing market boom. In fact, Zillow’s share price was up 182% in 2020, a move that sent its PS ratio up above 13 in early 2021, more than double its long-term average.
