3 Reasons Why I'm OK With the End of Zillow Offers
Let's talk about Zillow Group (NASDAQ: Z) (NASDAQ: ZG). It's on your mind right now, and it's naturally on my mind, too. The stock opened sharply lower on Wednesday after the company announced that it was bowing out of the home-flipping business.
It's a pretty big deal. We have to go back to May of 2017 when the leading online housing portal began testing what it called Instant Offers at the time, working with Premier Agent partners in Las Vegas and Orlando to assess a home's market value within two business days. A year later it began to expand into new markets, eventually rebranding the platform as Zillow Offers.
I'm not surprised to see the stock take a hit on the news that the company is shutting down its home-flipping business. It had become a large part of its top-line growth in recent years. However, I'm also relieved. Raising the white flag isn't popular right now, but it's a smarter move than you might think. Let's see why this could be a good thing even as the stock's plunge this week suggests that the market disagrees with me.
Source Fool.com
