Zillow stock plunges 20% after disappointing forecast
Zillow Group Inc. shares plunged 20% in late trading Tuesday after the online real-estate company disappointed investors with its forecast. Zillow reported a third-quarter loss of almost half a million dollars, less than a penny a share, on revenue of $343.1 million, up from $282 million a year ago. Analysts on average expected a loss of a penny a share on sales of $344 million. The big miss was in the forecast, which included decreasing the company's goal for full-year adjusted profit "to reflect lower than anticipated Premier Agent revenue and increased expenses, primarily headcount-related, as a result of higher-than-anticipated recruiting and relocation costs, and the impact of compensation inflation from the highly competitive job market," Zillow executives said in a letter to investors. Zillow guided for $340 million to $357 million in the fourth quarter, while analysts on average were expecting sales of $368 million. Zillow also announced a new chief financial officer, former Amazon.com Inc. finance executive Allen Parker; Zillow had been using an interim CFO since May. Zillow shares are basically break-even on the year, as the S&P 500 index has gained 2.4%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.