After Zillow Group announced it was going to get into flipping houses, its shares plummeted 11 percent — a record one-day drop the company hasn’t logged in three years.
The Financial Times reported shares fell by 11.1 percent following the Friday announcement that the real estate listings company would begin an “Instant Offers” business where it would acquire homes to be sold within 90 days, as The Real Deal reported. Zillow plans on rolling out the new service in Las Vegas and Phoenix.
Investors’ selling off shares brought the company’s gain for the year down to 20 percent; Zillow market value is just under $7 billion. [FT] — Erin Hudson