• Zillow’s shares have tumbled by about 37% since Friday.
• Q3 earnings show a $304 million write-down for Zillow’s iBuying business, with more losses to come.
• Zillow plans to close its iBuying service for good.
• Motley Fool Issues Rare “All In” Buy Alert
Zillow Group (NASDAQ:ZG)(NASDAQ:Z) sent shockwaves through the market on Nov. 2 after saying it planned to shut its iBuying operation, a home-flipping venture the company had touted as a pillar of its future. Zillow, best known for its online real estate marketplace, had amped up its iBuying operation this year and last, riding the momentum of the red-hot real estate market. But buying homes, expecting prices to rise for a quick profitable sale, is hard to pull off.
Leading up to the end of Zillow’s iBuying
The company initially announced a temporary pause in its iBuying operations on Oct. 18, halting new contracts and stating that strains in the labor and supply markets were proving challenging to keep in synch with its operational backlog. But its latest earnings reveal there is more to the issue. Click to read more at www.fool.com.