Zillow Boosts Share Repurchase by $750 Million – Buyback Wednesdays
The rapid rise in mortgage rates in 2022 and this year caused a ripple effect that impacted numerous real estate tech companies. The sudden change in the macro environment compelled companies to swiftly implement cost-cutting strategies, including workforce reductions and alterations to their business strategies. Notably, prominent players such as Zillow Group (Z) and Redfin Corporation (RDFN) were not immune to this downturn and faced substantial adverse consequences, particularly in terms of their growth trajectories.
Key Insights:
- Zillow, the real estate marketplace that connected buyers or renters with realtors made an ill fated turn into home flipping (iBuying).
- Founder Rich Barton returned to the company as CEO and oversaw the company’s exit from the iBuying business right before the market collapsed.
- Despite a challenging macro environment, the company continues to demonstrate strong performance and execution in terms of cash flows.
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