|Bid||51.01 x 1000|
|Ask||56.75 x 1100|
|Day's Range||53.71 - 56.15|
|52 Week Range||18.65 - 66.96|
|Beta (5Y Monthly)||1.13|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug. 05, 2020 - Aug. 10, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||42.53|
Zillow forecasts that home sales may fall as much as 60% through the end of this year, before rebounding by the end of 2021. Zillow Senior Principal Economist Skylar Olsen joins Seana Smith to discuss.
Zillow Group (ZG) resumes home buying for Zillow Offers in four of its markets, and announces implementation of new initiative to protect company stakeholders.
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.
Online home valuation resource Zillow Group (NASDAQ: Z) (NASDAQ: ZG) plans to boost its liquidity even further. At Zillow's current stock price of just about $52 per share, the company will issue about 9.6 million new Zillow C-shares. In an accompanying press release, Zillow announced that it "intends to use the net proceeds from the Shares Offering and the Notes Offering to repurchase a portion of its outstanding 2.00% convertible senior notes due 2021" (thus rolling over old debt), but also, potentially, for "acquisitions of, or investments in, other businesses, products or technologies" (i.e.
Both share classes of Zillow Group (NASDAQ: Z)(NASDAQ: ZG) blew past the market on Friday. For the quarter, Zillow's total revenue rose 148% on a year-over-year basis to nearly $1.13 billion. The company's generally accepted accounting principles (GAAP) net loss deepened to $163 million, from the year-ago shortfall of almost $68 million.
As of 3:10 p.m. EDT today, Zillow's stock was up 10%. Revenue soared 148% year over year to $1.1 billion, driven by a sixfold increase in its Zillow Offers home-flipping business. Notably, revenue growth in Zillow's Premier Agent business, which sells leads to real estate agents, accelerated to 11% in the first quarter, up from 6% in the fourth quarter of 2019.
(Bloomberg) -- Americans are spending more time than ever at home. Seems like a good time to sell them a new house, according to Zillow.Zillow Group Inc. is preparing to fire up the company’s home-flipping business as robust search activity on the company’s websites shows that house-hunters are undeterred by social distancing measures or economic uncertainty.The company, which stopped purchasing homes in March, has seen consumers embrace virtual home tours and digital transactions, giving Chief Executive Officer Rich Barton confidence to start buying homes even as Covid-19 pandemic continues to rage.“My belief is that people are spending so much time at home they’ve discovered the shortcomings,”Barton said in an interview from a vacation house, where he’s holed up with his family. “I don’t have a home office. My kids are all over the house, using the WiFi. I’m in the bedroom. I don’t know, maybe I should have a house with an office.”Zillow shares jumped as much as 13% to $54.58 on Friday. That followed a double-digit surge on Thursday that turned the stock positive for the year.Zillow, best known for its home-search tools, has spent the last two years building a data-driven spin on home-flipping known as iBuying. In that business, it uses its website to make rapid offers to home-sellers; when the sellers accept, Zillow buys the home, makes some light repairs, and puts the home back on the market.The business loses money, but has grown quickly – it generated $770 million in revenue in the first quarter, more than double what the company took in through its core advertising business.Softbank-backed Opendoor, which pioneered the model, has resumed buying homes. Redfin Corp., another iBuyer, restarted activity this week in Austin, Denver and the Inland Empire east of Los Angeles. The company said it expects to sell the homes it bought before halting the service in March for about 2% less than it had originally assumed.Redfin Now, as the iBuying service is known, “performed better in a downturn than some had feared,” CEO Glenn Kelman said on an earnings call Thursday.Zillow finished the first quarter with 1,791 homes on its books, according to a shareholder letter on Thursday. But Barton said that he’s not concerned about adding inventory while there’s still potential for another round of shelter-in-place orders.“Even if a second wave comes, we have learned, and the industry has learned -- and the customer is beginning to learn – that the transaction can be conducted safely,” he said.(Updates share price.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Zillow (ZG) delivered earnings and revenue surprises of 28.57% and 6.49%, respectively, for the quarter ended March 2020. Do the numbers hold clues to what lies ahead for the stock?
(Bloomberg) -- Zillow Group Inc. expects second-quarter revenue in its core advertising business to decrease 30%, pulled down by discounts designed to keep real estate agents on its platform with the housing market slowed due to coronavirus.The company issued guidance for the second quarter on Thursday. It also reported revenue of $1.1 billion for the first three months of the year, beating the average analyst estimate.Key InsightsPremier Agent, Zillow’s core business of selling leads to real estate agents, benefited from a strong housing market in January and February, the company said in a letter to shareholders. Annual Revenue growth in the segment accelerated to 11%, from 6% in the previous quarter.Zillow said it will likely resume activity in its fast-growing home-flipping program, Zillow Offers, in the next few weeks, after halting purchases in March. Its main competitor in that business, SoftBank-backed Opendoor, resumed operations in Phoenix and plans to gradually reopen in other markets.The company said that while buyers and sellers of homes “retreated” in March as social-distancing shut down the economy, demand for homes is now “returning in markets across the country.”Zillow Chief Executive Officer Rich Barton said in March that the company would reduce expenses by 25% to guard cash during the housing slowdown.Market ReactionZillow shares surged more than 12% on Thursday to $48.19, turning positive for the year.Get MoreClick here to read the company’s earnings statement.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of Zillow Group (NASDAQ: Z)(NASDAQ: ZG) soared 28.2% during April, according to data from S&P Global Market Intelligence. April's strong gain came on the heels of a dreadful March, when Zillow Group shares tanked 39% from $56 to $34 due to the panic over COVID-19. During April, CEO Rich Barton released his 2019 shareholder letter in which he reviewed some of the company's recent efforts.
Real estate marketplace platform Zillow (NASDAQ: Z) published a report today saying it believes home prices will dip 2% to 3% this year from pre-coronavirus levels, with prices returning to the levels seen at the end of 2019 by the third quarter of 2021. In what it believes to be the most likely of several scenarios outlined in the report, Zillow predicts that sales could rebound at a rate of about 10% per month after the initial plunge, as a quick economic recovery follows a short-term recession when the economy reopens. At the end of April, the National Association of Home Builders (NAHB) said that home builder confidence in 55 markets dropped to its lowest level since the fourth quarter of 2012.
(Bloomberg) -- The SoftBank-backed startup that used mountains of cash to reinvent the practice of flipping houses is betting that it’s safe to start shopping again.Opendoor, which halted purchases in March and laid off more than a third of its staff as the coronavirus kept U.S. homebuyers indoors, will resume operations in Phoenix this week, with plans to reopen in more than 20 additional markets in the months ahead.The company’s main service, letting owners sell without open houses or in-person closings, holds new appeal in the age of social-distancing. But it also carries big risks. Opendoor uses debt to buy homes, and its borrowing costs rise the longer it holds onto a property. Purchasing homes over the summer with the intention of reselling them in the fall could prove costly if the U.S. is mired in a recession or hit by a second wave of the virus.“The value proposition we provide to customers is to help them move with certainty and convenience,” Chief Executive Officer Eric Wu said in an interview. “We should be willing to take on some of that exposure and we should price homes appropriately due to that risk.”Business RisksOpendoor has raised $1.3 billion in equity capital from investors including SoftBank Group Corp.’s Vision Fund. The company purchased about 19,000 homes in 2019 and owned roughly 3,800 in March. Skeptics have seen inventory risk in the business model for years.Opendoor, founded in 2014, lets owners request bids online, and buys homes from those who accept. Unlike traditional flippers, the company makes light repairs and lists homes without major markups, profiting by charging a fee slightly above the commissions real estate agents collect.Despite the economic turmoil stemming from the outbreak, Opendoor is under pressure to get back in the business of buying and selling homes, said Mike DelPrete, a real estate tech strategist who tracks the industry.“They can’t afford to wait for things to get back to normal because they’re never going to get back to normal,” DelPrete said.Opendoor’s model, often called iBuying, is popular with real estate companies and home sellers, especially in cheaper markets with uniform, suburban housing stock. Zillow Group Inc., Redfin Corp., and a handful of others have adopted the strategy, collectively purchasing, for example, more than 7% of homes in Raleigh, North Carolina, and nearly 6% of homes in Phoenix in 2019.Why Zillow Went From Online Real Estate Ads to Flipping HomesThe company, whose investors also include single-family rental giant Invitation Homes Inc., has considered converting some of its properties into rentals, according to a person familiar with the company’s plans, who asked not to be named because the matter was private.“It’s always an option for us,” Wu said. “It’s not something we’re actively pursuing at this moment.”Instead, Opendoor is emphasizing its ability to limit personal interactions as it begins to acquire homes again. The company has started offering virtual tours, and launched a service, called Home Reserve, to buy new homes on behalf of customers while they list their current properties for sale.Wu said resuming acquisitions in the middle of a deadly pandemic will require a measured approach, but that Americans still have plenty of reasons to buy and sell homes.“There is still demand for people to move,” he said. “That could be driven by the fact that people need more space because they work from home, or they want to move out of the middle of the city because they want something less dense.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Zillow (ZG) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The traditional "spring buying season" for homes may be a bust this year for traditional realtors, Redfin (NASDAQ: RDFN), Zillow Group (NASDAQ: Z)(NASDAQ: ZG), and others, according to March data released Wednesday morning by the National Association of Realtors (NAR).
(Bloomberg Opinion) -- A U.S. housing crisis is coming and although it won't be anything like the last one, that won’t make it any less painful. Even though there has been no rampant speculation or subprime mortgage fraud, housing is still overvalued. And the dearth of inventory that’s plagued the current cycle will reverse in violent fashion once the worst of the virus has passed as financially strapped homeowners seek to raise cash. And as affordability collapses with fewer buyers eligible to buy a home, the only way to rectify the mismatch between supply and demand will be via declining prices.Home prices dropped about 35% between mid-2006 and early 2009 in the first nationwide decline since the Great Depression as measured by the S&P/Case-Shiller home price index. They have since recovered, and are now at 117% of their prior peak level in 2006. Home prices historically meandered in a range of three to four times median incomes, jumping to 5.1 times in December 2005 before collapsing. The ratio is now at 4.4 times, a level that was unprecedented prior to June 2004.Several factors that characterized the last decade will now work against housing. The lowest interest rates in U.S. history spurred a boom in luxury housing. At the start of the last decade, about a fifth of the homes in the U.S. were priced at $300,000 or higher. Ten years on, that's true for more than half of all homes. The National Association of Realtors says the inventory of existing homes for sale has dropped to about three months of supply from more than seven months. Supply has shrunk as millions of Baby Boomers unexpectedly delayed downsizing. One of the reasons for this was the longest bull market in stocks in history, which afforded would-be sellers the wherewithal to continue carrying higher maintenance and larger homes than otherwise possible.The recent reversal in the stock market has the potential to expedite the long anticipated “Silver Tsunami.” A June 2019 Fannie Mae report tallied the number of homes owned by boomers and the generation that preceded at about 46 million, more than a third of the 140-million-home housing stock. Zillow Group Inc. predicts “upwards of 20 million homes hitting the market through the mid-2030s (which) will provide a substantial and sustained boost to supply, comparable to the fluctuations that new home construction experienced in the 2000s boom-bust cycle.”But now, the number of homes Zillow projected to hit the market in a disciplined fashion over the next 15 years will become an exodus as retirees’ need to monetize the equity in their homes to supplement their disposable income skyrockets. One can only imagine how swiftly home prices will decline once boomers feel safe enough to open their homes to outsiders as part of the normal sales process. The University of Michigan’s preliminary consumer sentiment index for April that was released Thursday showed that plans to buy a home tumbled the most since 1979.The capping of deductions at $10,000 has already led to a 10% to 25% discount on home prices in high tax states relative to their lower-tax counterparts. Anticipated increases in property taxes to offset collapsing state and municipal budgets will amplify the damage inflict on those on fixed incomes. A complete unknown that could increase the coming surge in supply is the pool of single-family rentals. About eight million landlords who own between one and 10 properties accounting for half the nation’s rental properties, according to Avail, a software company that caters to landlords. Financial duress will come swiftly for those carrying multiple mortgages. Also, a small cohort of institutional investors own roughly 250,000 of the roughly 16 million pool of rental homes, according to ATTOM Data Solutions. Making matters worse is the crash in demand for jumbo mortgages, which are those over the $510,400 conforming loan ceiling. Wells Fargo & Co. recently announced that it was halting the purchase of jumbo mortgages that originate from other lenders. Investors are sticking with government-backed loans which have greater security given payments will still be received even if borrowers have been granted forbearance. In the last downturn it took almost five years to close the premium charged to attain a jumbo mortgage over rates on conforming mortgages.And finally, there are more than nine million second homes in the U.S. that may or may not be financially viable given the depth of the current recession. Lending standards tightened dramatically in the last recession as the unemployment rate crested at 10%. It’s difficult to imagine the challenge prospective homebuyers will face in the coming years given we know a 10% jobless rate is not a best-case scenario.It’s also impossible to quantify how Americans will perceive homeownership given the hardship so many will endure. If frugality is embraced as it was after the Great Depression, homes will once again be viewed as a utility. The McMansion mentality is at risk of extinction.The reason why the collapse in the subprime mortgage market hit the housing market so hard was because the lead up was predicated on the fact that there had never been a nationwide decline in home prices. But now for the second time in a little more than a decade, Americans are poised to witness the impossible. This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Danielle DiMartino Booth, a former adviser to the president of the Dallas Fed, is the author of "Fed Up: An Insider's Take on Why the Federal Reserve Is Bad for America," and founder of Quill Intelligence.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Zillow said Monday it will temporarily stop buying homes in all 24 markets where it operates in response to public health orders related to the COVID-19 pandemic, the latest real estate startup to shift how it operates as the disease caused by coronavirus continues to spread. Zillow said it decided to pause making offers to sellers after several counties and states, including California, Illinois, Louisiana, Ohio, New York and Nevada, implemented emergency orders requiring people to stay home and all non-essential business activities, including some real estate-related activities, to stop. Zillow follows action from other real estate startups such as Opendoor and Redfin to temporarily pause making offers on homes.