Zillow's iBuying Business Went From Flip to Flop: Can It Recover?
Zillow Group (NASDAQ: ZG) (NASDAQ: Z) sent shockwaves through the market on Nov. 2 after saying it planned to shut its iBuying operation, a home-flipping venture the company had touted as a pillar of its future. Zillow, best known for its online real estate marketplace, had amped up its iBuying operation this year and last, riding the momentum of the red-hot real estate market. But buying homes, expecting prices to rise for a quick profitable sale, is hard to pull off.
The company initially announced a temporary pause in its iBuying operations on Oct. 18, halting new contracts and stating that strains in the labor and supply markets were proving challenging to keep in synch with its operational backlog. But its latest earnings reveal there is more to the issue.
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Source Fool.com
