Pat Connolly's avatar
$115.7m follower assets
$Z short term trade idea

Zillow is set to report after hours. The market will need to digest 2 things- a potentially bad print due to their iBuying activity & management commentary regarding iBuying.

If you believe they will abandon iBuying and this will subsequently improve their outlook moving forward it may be prudent to set a limit buy order below the closing price in order to capture an initial sell off & position yourself for a rally on the news of abandoning iBuying.
Doug Helton's avatar
Great idea
Arjun Banerjee's avatar
I wonder if that’s baked in they already announced selling off $3b of homes
Pat Connolly's avatar
@ban3rg yeah very well could be. I’m hoping the selling is mostly algos reacting/ stop losses getting hit

• need some positive news from management for this to work
Rick Gurner's avatar
This appears to be playing out perfectly

Pat Connolly's avatar
@rick_gurner there was definitely a moment to capture the quick pop for ~10% trade

I was able to filled at $78 so hopefully that’s enough cushion to breakeven if things don’t pan out
Rick Gurner's avatar
Did you end up setting a limit buy order @pat_connolly? If so, what was your limit price?
Pat Connolly's avatar
@rick_gurner filled at $78
Rick Gurner's avatar
I'd feel pretty good about that if I were you. @pat_connolly
Gaurav Kotak @ Fincredible's avatar
I had a small position in $Z. I was lucky enough to sell 50% of my Z at 95 when heard of rumors of pause in ibuying and the other 50% at 86 as soon as earnings were released.

@pat_connolly buying at $78 may well be a good price for their core business, and I agree with you that short-term profit metrics should improve since ibuying was negative EBIT.

Z stopping ibuying entirely is a much bigger deal than 'pausing' due to supply constraints. For me, this optionality was needed to stay invested. I wonder if getting into ibuying has pissed of their core customer (agents) enough to dent their core business.

P.S. I have a larger investment in $RDFN. I prefer their full-service business model. I've appreciate their measured approach to ibuying, more as complement to their other buy/sell options. I'm going to be laser focused on Glen's commentary around their ibuying approach going forward.
Rick Gurner's avatar



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