Zillow Discovers House Flipping Is Best Left to Reality TV
If only the market could have foreseen how risky Zillow's (NASDAQ: Z)(NASDAQ: ZG) homebuying program was. Turns out that this isn't a sustainable business model, the company ended up paying more to buy and fix up a home than they could sell it for.
Zillow's announcement that it was winding down the Zillow Offers program sent the real estate information giant's stock into a tailspin, losing 36% of its value. But maybe this is actually good news. Or it will be after Zillow works through the inventory of homes it has in its portfolio.
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Source Fool.com
