Can Opendoor Score After Zillow's Fumble?
Zillow(NASDAQ: Z) made headlines when it shuttered its homebuying business. Many investors thought Zillow's proprietary Zestimate would give it an advantage. However, management admitted during its third-quarter that "the unpredictability in forecasting home prices far exceeds what we anticipated." Zillow acknowledged defeat and shut down the business segment, forcing Zillow to reduce its headcount by 25% and take more than $500 million in writedown losses.
Opendoor (NASDAQ: OPEN) also competes in this space, but it is succeeding, unlike Zillow. Will Opendoor rule this market, or is it destined to suffer the same fate as Zillow?
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Source Fool.com
