Why Zillow Group Fell 16% in March
Shares of online real estate company Zillow Group (NASDAQ: Z)(NASDAQ: ZG) dropped 16% in March, according to data provided by S&P Global Market Intelligence. The company's stock price has been on the decline since it announced back in November that it was ending its iBuying venture, and investors still aren't clear on where the company will land.
Under the iBuying model, companies use algorithms to rapidly calculate homes' values, buy them "instantly" for cash, do some renovations, and then flip them at (hopefully) a profit. It has become a big business, with competitors such as Opendoor Technologies demonstrating success. That's why Zillow threw shareholders for a loop when it basically admitted it had failed at that final step.
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Source Fool.com
