Shares of Zillow Group fell 5.7% in after-hours trading after closing down 10.2% on Tuesday.
Tiffany Hagler-Geard/Bloomberg
Zillow Group said Tuesday it would shut down its homebuying and selling business. The announcement follows a previous pause in the purchase of new homes through the end of the year.
“We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated and continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility,” Zillow CEO Rich Barton said. “Our core business and brand are strong, and we remain committed to creating an integrated and digital real estate transaction that solves the pain points of buyers and sellers while serving a wider audience.”
The real estate firm also released third-quarter earnings that came in below analyst expectations. Zillow reported revenue of $1.7 billion and an adjusted Ebitda loss of $169 million in the quarter. Analysts had expected sales of about $2 billion and Ebitda of $114 million.
Shares fell 5.7% in after-hours trading after closing down 10.2% on Tuesday.
This is breaking news. This article will be updated with more information about Zillow’s announcement soon.
Write to Shaina Mishkin at [email protected]
