After exposing the potential issues with the company’s internal operations, the stock price of Zillow Group started to plummet. Aside from the company’s core business, many of these issues were also brought up by the scrutiny of the public. ZG stock trades at $68,24 in the pre-market adding a 0,01$ from the previous one. These last 3 years, the company’s earnings per share have grown at a 19% rate, but its share price has increased by 30% per year. In the 4th quarter, the company warned that it would lose between $240 million and $265 million, and it had also shut down its “Zillow Offers” operations. It also fired around 25% of its employees.
The last one and a half years have been struggling for the company. The rise of inflation, the COVID-19 crisis, and the subsequent volatility have caused the market to go crazy. The company’s plan to expand into house flipping flopped. It is currently trying to sell off thousands of properties for almost $2.8 billion in total. A complex of factors that could have caused the market to overheat, such as the lack of skilled labor and rising mortgage rates, have added oil to the fires.