Why Zillow’s stock is finally starting to rebound | Personal finance
Zillow (NASDAQ: ZG) investors have had their fair share of volatility and anxiety over the past few months. Is hope on the horizon? In this clip from “Real Talk” on Motley Fool live, recorded on February 11Motley Fool contributors Matt Frankel and Jason Hall discuss Zillow’s finances after ending its iBuying business and analyze where its actions might go.
Matt Frankel: Zillow is up 18% last time I looked. I think it’s still holding up pretty well there, but it’s a beautiful day. At first glance, you might not understand why, because if you look, a loss of $528 million for the full year, $261 million in the fourth quarter alone. If you remember, this is Zillow’s first quarter since it announced it was getting out of the iBuying business. We’ll touch on some of the details of Zillow’s business as we chat. But, the big story is that the iBuying business liquidation is not only going faster than expected, but the economy is better than expected. Zillow is losing less money than they feared. Zillow expected to sell about 5,000 homes in the fourth quarter out of about 18,000 on its balance sheet. It sold nearly 8,400 homes in the fourth quarter, well above expectations. There are still about 10,000 left. CEO Rich Barton said this adds better unit economics than expected. Jason, first, we’re going to start with this part of the revenue report. What do you think of iBuying’s phasing out?