Why Zillow's Stock Is Finally Starting to Rebound
Zillow (NASDAQ: ZG) investors have had their fair share of volatility and cause for concern in recent months. Is hope on the horizon? In this clip from "Real Talk" on Motley Fool Live, recorded on Feb. 11, Motley Fool contributors Matt Frankel and Jason Hall discuss Zillow's financials in the aftermath of pulling the plug on its iBuying business and analyze where its stock might be headed.
Matt Frankel: Zillow is up by 18% last I looked. I think it's still holding pretty well around there but it's having a great day. At first glance, you might not understand why because if you look, a $528 million loss for the full-year, $261 million which happened in the fourth quarter alone. If you remember, this is Zillow's first quarter since announcing it's getting out of the iBuying business. We'll get to some of the details of Zillow's business as we chat. But, the big story is that the wind-down of the iBuying business is not only proceeding faster than expected, but the economics are better than expected. Zillow's losing less money than they had feared. Zillow expected to sell about 5,000 homes in the fourth quarter out of about 18,000 on its balance sheet. It sold almost 8,400 homes in the fourth quarter, so way above expectations. It still has about 10,000 left. CEO Rich Barton said that it's adding better unit economics than expected. Jason, first, we'll start with that part of the earnings report. What do you make of the iBuying wind-down?
Source Fool.com
