Zillow Down 25%; iBuying is Dead!
<p><a href='https://financialmodelingprep.com/financial-summary/Z'>Zillow Group, Inc. (NASDAQ:Z) </a>closed almost 25% lower on Wednesday following the company’s unexpected announcement of closing down the iBuying business in a painful near-term strategy change. </p>
<p>Analysts at RBC Capital provided their views on this announcement, lowering their price target on the company’s shares to $100 from $145. </p>
<p>According to the analysts, the overhang from this is threefold:</p>
<p>(1) Eliminating iBuying removes the clear down-funnel thesis thought to be critical to capturing seller listings,</p>
<p>(2) Management's explanation of alternatives around new products, potential partnerships and any other drivers of capturing seller signal is either not the clear path that iBuying represented and/or are going to take time to develop,</p>
<p>(3) Selling down inventory could persist into next year exposing the company to further balance sheet risk.</p>

NASDAQ:Z