Following Friday's huge one day fall of 7.31%, the market continued to punish Zillow today for its stupid and arrogant decision to become a house flipper with another fall today of 1.63%. - msn.com Money summed it up today saying "
". . . . Perhaps more than anything, it’s a move that reeks of desperation at a time when all seems well for the real estate market… the absolute last thing owners of Zillow stock want to see, particularly right now. In a more immediate and basic sense, however, the foray into this new venture raises more questions than it answers, and leaves the company vulnerable to housing market volatility. Never even mind the fact that “flipping” is usually a labor-intensive business that at least involves a close look at a specific home, and often times requires physical improvements to a home to make them more marketable to their end-buyer.It’s understandably just more of a shift than Zillow stockholders can stomach."
It is now evident that Zillow CEO Spencer Rascoff was being less than truthful when he said in 2015 “We sell ads, not houses. So we’re not actually in the transaction, we’re in the media business.”
I wonder how many of the 150,000 REALTORS who collectively gave Zillow a billion dollars last year, will wake up and realize that Zillow is actually conspiring against them.