Why Zillow Group Jumped Almost 20% in October
Shares of real estate technology company Zillow Group (NASDAQ: Z)(NASDAQ: ZG) surged 19.3% in October according to data provided by S&P Global Market Intelligence. That was a lonely jump in an otherwise downward trajectory, with the stock down 22% year to date, including a 19% drop so far in November.
Two weeks ago, Zillow said it was suspending its Zillow Offers program, which buys, repairs, and flips homes. It chalked that up to a shrinking labor pool of workers to repair homes. That tanked the stock, but it began to rise by the end of the month, probably in anticipation of the third-quarter earnings report.
The company made the surprise announcement, first reported by Bloomberg, in the third-quarter earnings release yesterday that the program was a blunder, and management is in the process of shutting it down altogether.
Source Fool.com
