Zillow is getting into the home-flipping business


#1

#2

In the first hour after the announcement, Zillow stock fell about 3 percent in after-hours trading.

Investors don’t like it.


#3

Opendoor also does this. They wont go into bay area market. But hanera should be afraid.


#4

Hanera? I thought he blew away the competition on his primary. These guys won’t pay market price.


#5

I was joking. Hanera is onr of the few that invested outside of bay area.

Manch@ said re investors hate it, but nothing to worry in bay area.


#6

Got it! I think Manch was referring to stock investors not RE.


#7

Stuff like this usually happens during the mania before the end of the bull run. Values increase a lot in the mania phase.

I wonder if they’ll surpress showing a MLS listing if they’re algorithm flags it as a bargain that they should buy.


#8

I didnt fully read it! Lol. That might actually br a good revenue source, better than their current one.


#9

Flipping is much more capital and labor intensive than running a website. So it looks to me Zillow is bumping into a ceiling with its current business. Definitely bearish.


#10

Are we near the end?! Are we near the end?!?!

(Running scared…) :scream:


#11

:chicken:


#12

I was imitating your usual behavior :slight_smile:


#13

I hate Zillow. But I will sell them my dogs.


#14

Of course they are hitting limits of website. I thought that is why it is bullish? Opendoor is making a lot of money this way, afaik, but happy to be proven otherwise.


#15

How do you know they are making a lot of money flipping? What’s their ROA?


#16

there’s some thought-piece:

I haven’t fully read it, but looks interesting.


#17