Zillow Exits , Home-Buying Business, Stock Plunges 25%.<br />CNBC reports shares of online real estate firm Zillow fell 25% after the company announced plans to leave the home-flipping business.<br />Zillow said the exit was attributed <br />to an inability to predict increasingly <br />volatile housing prices.<br />Though its online marketplace continues to thrive, the company reported a loss of more than $328 million in the third quarter.<br />CEO Rich Barton says Zillow<br />will cut a quarter of its workforce.<br />We determined that further scaling <br />up Zillow Offers is too risky, <br />too volatile to our earnings and operations, too low of a return on <br />equity opportunity and too narrow in <br />its ability to serve our customers. , Rich Barton, CEO Zillow, via CNBC.<br />Zillow's iBuying process allowed homeowners <br />to sell their houses instantly through <br />the company's online marketplace.<br />Using massive data sets to calculate <br />automatic offers, Zillow would buy a home, <br />invest in repairs and try to sell it for a profit.<br />Using massive data sets to calculate <br />automatic offers, Zillow would buy a home, <br />invest in repairs and try to sell it for a profit.<br />Using massive data sets to calculate <br />automatic offers, Zillow would buy a home, <br />invest in repairs and try to sell it for a profit.<br />The U.S. labor market has thinned, and <br />supply chain issues have sent the price of building materials through the roof.<br />The U.S. labor market has thinned, and <br />supply chain issues have sent the price of building materials through the roof.<br />Barton says the company's<br />pricing model can no longer be trusted.<br />What it boils down to is our inability <br />to have confidence in pricing in <br />the future, enough confidence to <br />put our own capital at risk. , Rich Barton, CEO Zillow, via CNBC
