Stock down 17% today. https://www.cnbc.com/2018/08/06/zillow-stock-acquisition-mortgage-lenders-of-america.html
Where's the Zillow guy who swore Zillow stock would outperform MSFT over the next few years?
I'm still here, I dint swear anything about stock price. This drop/raise happens when you operate like a startup. If you hear the earnings call you will see all the big swings we are taking, and with it comes risk, lots of exciting work and fluctuations in stock price. Like Amazon, zillow is doing things for the long term. Personally, I would have left the company long back(mostly to opendoor) had we not taken these steps. This is exciting and gives us an opportunity to grow. No offense but few Microsoft people dont seem to get the growth mindset that people from amazon have. As said like that day Microsoft is a blue chip and it cant grow like 200 percent or drop 40% percent In a year(without overall market change). With zillow both is possible and I love that. Startups are different from blue chips which take lesser risks.....
By what measure is Zillow a startup?
Startup can mean different things for different people. To me it's the mindset To 1) taking risks 2) making huge bets in order to try to fundamentally change the industry 3) not being afraid of short term results 4) less than 20,000 employees in size 5) Not waiting on organic growth or wait to be disrupted by some one else 6)In terms of code, use the latest stack..push code daily Zillow qualifies ....
Given they're just copying our model... Zillow is going from a high margin low cost business to a low margin high cost business. And it's a business that directly opposes their core business serving agents. So they're threatening their current business and there's plenty of risk on their new business. I'm not saying they'll fail, but they sure as hell don't deserve the valuation the market gave them before which is predicated on their current market continuing to grow with a much smaller risk profile. From a fundamentals perspective, it's logical. They guys from Zillow may be saying it's in the name of innovation and they may even be right. But stock price needs to account for risk. And even if they do make it to the other side, they've just introduced a shitton of risk in their business.
It’s actually serving agents. We use Premier Agents for all the transactions.
All innovation is copying at some level. Innovation can be about changing yourself for the better. It’s not equivalent to invention.
I don't think we've disagreed on any of those points. I'm merely pointing out that zillow has introduced risk which, rightly so, should impact the stock price. I don't think you disagree with that statement either
Also for all the Zillows here, Opendoor is hiring :-). Ping me and I'll refer you! And if this is the reason you stayed at Zillow, think about it. May the best execution win (and you know OD is probably going to win :-P)
😂😂🤣🙄
I don’t know, open door is a bit like postmates. When Amazon enters the market things get much harder.
I just want to be able to buy a house with one click.
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Why does the market think this is a bad decision? I feel like this makes a lot of sense for their business.
Because Zillow is signaling they are getting into a MUCH more capital intensive business and the market either 1) doesn't think they can pull it off, or 2) thinks already negative profit margins will get much worse as a result. It's definitely a gamble
This is why I'm an engineer and not an investment banker