Zillow Group, Inc. (Z), a digital real estate company that operates real estate brands on mobile applications and websites in the United States, has plunged 12.55% in aftermarket trading session and consequently was trading at $76.26 when last checked. On Tuesday, Z closed the day at $87.20 after declining 10.24% during regular trading hours. The constant decrease is attributable to the investigations of securities fraud by the company.
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Why Z Stock declining?
Several law firms started investigating the potential violations of federal securities law by the Zillow Group (Z). On November 1st, Zillow announced it would shut down its home buying and selling business. The company cited its incompatibility to accurately predict its home prices. Further, the company said that it would reduce its workforce by 25%. On this news, Zillow shares plunged as much as 11% to $76.22 in late trading.
Q3 2021 financial highlights
On Tuesday, Z reported the financial results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company generated total revenue of $1.73 billion during the quarter against $656.6 million for the same period of 2020. The company generated a gross profit of $240.58 million during the period against $412.91 million for the same period of 2020. The company bore a net loss of $328.17 million against the net income of $39.57 million for the same period of 2020.
While commenting on the results, co-founder and CEO of Z, Rich Barton, said that the company’s core business and brand are strong. He hoped that the company would remain committed to creating an integrated and digital real estate transaction that would solve the pain points of buyers and sellers.
Future for Z Stock?
During the last three months, Z has declined more than 20%. The prime reason for this decline is some haphazard decision making by the company’s management. Estimates, however, suggest that the company is in a good position to bounce back in the coming quarters.