Zillow shares surge as home segment boosts revenue – Reuters

FILE PHOTO – A “For Rent” sign is placed in front of a home in Arlington, Virginia, U.S., June 8, 2021. Picture taken June 8, 2021. REUTERS/Will Dunham

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Feb 11 (Reuters) – Shares of Zillow Group Inc (ZG.O) rose 13% on Friday after the online real estate firm’s fourth-quarter revenue handily beat estimates, helped by a strong performance at its home segment.

The segment, which helps customers list their properties for sale, marked an 11-fold rise in revenue as Zillow managed to sell inventory faster and at better prices despite setbacks due to the Omicron coronavirus variant.

The results hint at a turn in Zillow’s fortunes. The company’s shares slumped nearly 50% in November, when unpredictable home prices forced Zillow to announce a surprise exit from its business of flipping houses. read more

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FILE PHOTO – A “For Rent” sign is placed in front of a home in Arlington, Virginia, U.S., June 8, 2021. Picture taken June 8, 2021. REUTERS/Will Dunham

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Feb 11 (Reuters) – Shares of Zillow Group Inc (ZG.O) rose 13% on Friday after the online real estate firm’s fourth-quarter revenue handily beat estimates, helped by a strong performance at its home segment.

The segment, which helps customers list their properties for sale, marked an 11-fold rise in revenue as Zillow managed to sell inventory faster and at better prices despite setbacks due to the Omicron coronavirus variant.

The results hint at a turn in Zillow’s fortunes. The company’s shares slumped nearly 50% in November, when unpredictable home prices forced Zillow to announce a surprise exit from its business of flipping houses. read more

Register now for FREE unlimited access to Reuters.com

As part of the exit, Zillow is selling more properties to New York-based investment firm Pretium Partners, Bloomberg News reported on Friday, citing people familiar with the matter.

Pretium recently bought more than 800 properties from Zillow for nearly $300 million and signed a roughly $150 million agreement to acquire 400 more, according to the report.

Zillow reported quarterly revenue of $3.88 billion, compared with analysts’ estimates of $2.98 billion, according to Refinitiv IBES data.

Several brokerages raised their price targets on the company’s stock, on Zillow’s move toward a “housing super app”, with the company aiming to integrate the processes related to buying or selling a house.

Zillow’s shares were trading at $54.37.

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Reporting by Nathan Gomes in Bengaluru; Editing by Devika Syamnath and Shounak Dasgupta

Our Standards: The Thomson Reuters Trust Principles.

Source: https://www.reuters.com/business/retail-consumer/zillow-shares-surge-strong-home-segment-boosts-revenue-2022-02-11/