Down 61%, Is Zillow Group a Spicy Buy?
Zillow Group (NASDAQ: ZG)(NASDAQ: Z), the largest online platform for buying and selling real estate, is in somewhat of a transitional period. Shares are sitting 61% lower than just one year ago after Zillow exited its iBuying business. Now, the company is finding its way forward while working to rebuild investor confidence after a volatile year. But is today's low share price and Zillow's vision enough? Here's a closer look at whether or not Zillow is a buy.
Over the past four years, iBuying was the dominant focus for Zillow Group. But the program, which used algorithms to create cash offers for homes online, was announced as a failure -- losing an average of $27,000 per home after taxes at the end of 2021. Zillow was forced to redefine what's driving its future.
At the end of 2021, Zillow revealed its new brainchild, The Housing Super App, which will expand upon its current offerings through Zillow Closing Services, Zillow Rentals, Zillow Agents, and Zillow Home Loans to further enhance and simplify the renting, buying, and selling process.
Source Fool.com