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Chapter 11 filings? Look at their balance sheet, they have over $3B in cash. They will be staying afloat comfortably.

• ianai 5y ago
  Just some quick figures. They purchased 15k homes in Q2 alone. Debt on 15,000 homes with average purchase price of 350k (as a ballpark figure) comes to 5.25B. There’s a lot of information we don’t have but them laying off huge percentages of staff is a scary indicator. Edit-also note their market cap is about 17B.
  • FFRefresh 5y ago
    Can you point me to the source that says they bought 15k homes in Q2 alone? Zillow says they bought 3,805 homes in Q2: https://s24.q4cdn.com/723050407/files/doc_financials/2021/q2/Zillow-Q2'21-Shareholder-Letter_Exhibit-99.3.pdf https://s24.q4cdn.com/723050407/files/doc_financials/2021/q2...
    • ianai 5y ago
      This might be where google got that figure. Again, as I state above, I was using rough figures to get an idea of the magnitude of the funds they were devoting to their flipping/analysis unit. It looks like they were doing thousands of units instead of tens of thousands with discrepancies among the sources I'm finding in google: https://www.zillow.com/research/zillow-ibuyer-report-q2-2021-30011/ https://www.zillow.com/research/zillow-ibuyer-report-q2-2021... What's not changed is the fact they were leveraging a significant portion of their company's market cap into this segment and it resulted, so far, in them laying off a quarter of their labor and completely terminating the program - amongst other things. This is not good news for their business and prospects of continuing to be an ongoing concern.