Zillow Exits , Home-Buying Business, Stock Plunges 25%.
CNBC reports shares of online real estate firm Zillow fell 25% after the company announced plans to leave the home-flipping business.
Zillow said the exit was attributed
to an inability to predict increasingly
volatile housing prices.
Though its online marketplace continues to thrive, the company reported a loss of more than $328 million in the third quarter.
CEO Rich Barton says Zillow
will cut a quarter of its workforce.
We determined that further scaling
up Zillow Offers is too risky,
too volatile to our earnings and operations, too low of a return on
equity opportunity and too narrow in
its ability to serve our customers. , Rich Barton, CEO Zillow, via CNBC.
Zillow's iBuying process allowed homeowners
to sell their houses instantly through
the company's online marketplace.
Using massive data sets to calculate
automatic offers, Zillow would buy a home,
invest in repairs and try to sell it for a profit.
Using massive data sets to calculate
automatic offers, Zillow would buy a home,
invest in repairs and try to sell it for a profit.
Using massive data sets to calculate
automatic offers, Zillow would buy a home,
invest in repairs and try to sell it for a profit.
The U.S. labor market has thinned, and
supply chain issues have sent the price of building materials through the roof.
The U.S. labor market has thinned, and
supply chain issues have sent the price of building materials through the roof.
Barton says the company's
pricing model can no longer be trusted.
What it boils down to is our inability
to have confidence in pricing in
the future, enough confidence to
put our own capital at risk. , Rich Barton, CEO Zillow, via CNBC