Zillow CEO on Missed Guidance, Mortgage Origination Deal

The video discusses a 15% stock price decline due to revenue misguidance in the rentals business. The company plans to improve this by focusing on a recent acquisition that expands its market. The acquisition, a mortgage originator, aligns with Zillow's strategy to integrate mortgage origination with its home buying and selling services. The company emphasizes its long-term strategy over current market cycles, aiming to enhance its service offerings and revenue streams. It also addresses misconceptions about its home flipping business, clarifying it as a service to sellers, and highlights the strategic importance of mortgage origination in its business model.

What was the primary reason for the decline in Zillow's stock price?

• Increased competition in the market

• A failed acquisition attempt

• Underperformance of the rentals business

• A decrease in the overall housing market

What is the strategic importance of Zillow's recent acquisition?

• It allows Zillow to enter the mortgage origination business

• It helps Zillow expand internationally

• It diversifies Zillow's investment portfolio

• It reduces Zillow's operational costs

How does Zillow view its business cycle in relation to the economic cycle?

• Zillow aligns its strategies with the economic cycle

• Zillow focuses on its own business cycle

• Zillow ignores both cycles

• Zillow only considers the mortgage cycle

What is the misconception about Zillow's business model?

• That it focuses solely on rentals

• That it only sells advertising

• That it is involved in home flipping

• That it is primarily a real estate listing service

How does Zillow's service appeal to homeowners?

• It offers the lowest prices for homes

• It simplifies the home selling process

• It provides free home valuations

• It guarantees a sale within a week