Zillow said it was getting out of the iBuying business in 2021, and the stock crashed as a result. Investors seem to have also discounted that its core business is strong and growing. Zillow isn't the same as it was a year ago, but long-term it may be a better company.
Why is Zillow’s stock price going down?
Aug 11, 2021 · 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...
Is Zillow's iBuying business getting worse?
May 19, 2021 · However, the stock price is now cooling off significantly, losing nearly 50% of its value since hitting record highs in mid-February. The loss can be summed up as the company not quite delivering...
What is the target price for Zillow Group stock?
Nov 03, 2021 · 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...
Which insiders have sold Zillow Group company stock in the last year?
Nov 02, 2021 · Shares of real estate technology stock Zillow Group ( Z -1.69% ) ( ZG -1.73% ) fell as much as 12% in midday trading on Tuesday. Shares are at their daily low as of 1:10 p.m. EDT and show no sign ...
Why is Zillow failing?
NO: Zillow's failure is a result of a lack of experience among executing the plan. They missed the impact of seasonality; missed the fact that the frenzy of buyers creating instant sales would end, and they failed to discount purchase prices by sufficient margins for quick resales.Nov 12, 2021
Is Zillow stock a good buy?
Zillow Stock Price The stock has since pulled back significantly and now trades around $55 per share. That places the stock at just 10% higher than where it traded in 2017. The poor stock price performance has created an excellent buying opportunity.Feb 16, 2022
Is Zillow a BUY SELL HOLD?
Zillow Group has received a consensus rating of Buy. The company's average rating score is 2.60, and is based on 3 buy ratings, 2 hold ratings, and no sell ratings.
Is Zillow stock overvalued?
Therefore, we rate Zillow stock at Neutral for now.Nov 5, 2021
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 happened
Shares of real estate technology stock Zillow Group ( Z 0.14% ) ( ZG 0.75% ) fell as much as 12% in midday trading on Tuesday. Shares are at their daily low as of 1:10 p.m. EDT and show no sign of stopping right now.
So what
News continues to get worse out of Zillow's home buying business. Last month, news broke that Zillow was "pausing" its iBuying business for the remainder of the year as it works through backlog.
Now what
Overpaying for homes and selling them at a loss is bad, but keep in mind that the iBuying business is very young and Zillow along with other players in the market are learning as they go.
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What happened
Shares of online real estate platform Zillow ( Z -0.99% )( ZG -0.86% ) were pummeled this week. The tech stock 's weakness was driven by news that Zillow is closing its homebuying business, Zillow Offers.
So what
On Tuesday, Zillow announced it's winding down its homebuying business after determining that the program could result in "too much earnings and balance-sheet volatility," explained Zillow co-founder CEO Rich Barton.
NASDAQ: ZG
Capturing the volatility in the business, Zillow announced this week that it recorded a $328 million loss for its third quarter. This loss was entirely due to its Offers business.
Now what
Management said the winding down of its Zillow Offers operations will take several quarters. The company will also need to lay off 25% of its workforce. "This is not something we take lightly," said Barton. "We are grateful for their efforts, and we are committed to providing a smooth transition."
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What happened
The stock market was relatively flat on Monday morning, but real estate specialist Zillow Group ( Z -2.98% ) ( ZG -2.30% ) was a major underperformer. As of 10:30 a.m. EDT, shares had fallen by almost 11% and are now down by nearly 60% from their 52-week high.
So what
The reason for today's drop is that the company announced it is suspending its Zillow Offers iBuying program for the rest of the year. If you aren't familiar, this is the part of Zillow's business that buys real estate directly from sellers, makes repairs, and then resells the homes.
Now what
This certainly isn't ideal news, and rivals like Opendoor Technologies -- the largest iBuyer -- aren't reporting similar problems. But it's important for investors to take a step back and take today's news with a big grain of salt.
About 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.
Zillow Group (NASDAQ:Z) Frequently Asked Questions
5 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for Zillow Group in the last twelve months. There are currently 2 hold ratings and 3 buy ratings for the stock.
What is Zillow Offers?
The Zillow Offers segment, which directly buys homes from customers and then sells them to a third party, is the biggest part of the business. While it sounds like a mammoth task, it's a simple way to offer a standardized service to both buyers and sellers, removing some of the noise from the sales process.
Is Zillow a one trick company?
Zillow isn't a one-trick tech company. It's a group of nine brands threaded through all the moving parts of the residential property business -- sales agents, a rental marketplace, broking services, and even home lending. The goal: a one-stop-shop for all things real estate, volume-focused and based online.
