Why Zillow Stock Dropped Today
Shares of Zillow Group (NASDAQ: ZG) (NASDAQ: Z) fell nearly 12% on Tuesday after the real estate platform said it would seek to raise $1 billion via stock and convertible debt offerings. In its recently released first-quarter earnings report, Zillow highlighted the steps it was taking to bolster its cash reserves during the COVID-19 crisis, ahead of what many economists believe will be a forthcoming economic recession. Zillow's cost-reduction initiatives helped it grow its cash and investments up to $2.6 billion by the end of March.