$Zillow-C (Z.US)$ Zillow has 5200 employees. So they've let ...
$Zillow-C (Z.US)$ Zillow has 5200 employees. So they've let go 25% of them, that doesn't mean they're revenue stream is down 25%. Likely the house flipping department was labor intensive.
The stock was at $90 this time last year but this year's revenue is up 164%. This is likely the floor.
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Jakob Lundberg : Hope your not investing based on those assumptions because they're wrong.
Don't look att revenue or revenue growth for these ibuying businesses because they register a house sold as revenue... But they also have to buy the house first! You need to look at gross profits and operating margins to no if they're actually making money selling their inventory.
For analogies sake, looking just at revenue would be equivalent to you claiming you made 2M dollars from a house sale without disclosing you bought the house for 3M.
Zillow is on average losing money on every house sold. That's why they are shutting down their ibuy business. It's a shit show.
The core business that's left grew revenue about 16% yoy this quarter. A fine business but next quarters will hurt this company as they keep selling of their remaining inventory (probably at a loss).
Tammyy OP Jakob Lundberg : Thanks for your article