Tuesday’s Headlines: Why Is Zillow’s Share Price Plummeting?

Tuesday’s Headlines: Why Is Zillow’s Share Price Plummeting?

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Cloudflare (NET) +7.8%

Roku Inc. (ROKU) +6.2%

Nordstrom (JWN) +5.5%

RH (RH) +4.6%

Yext (YEXT) +4.1%

Moving Down ⬇️

Zillow (Z) -9.4%

TrueCar (TRUE) -4.7%

Walt Disney Co. (DIS) -3.0%

Trip.com Group (TCOM) -2.8%

Redfin (RDFN) -2.6%

1. News that Zillow Group (Z) is putting a pause on buying more properties sent shares in the company down over 9% yesterday. The Seattle-based firm said the property market is struggling with labor shortages and supply disruptions, which are hampering timely sales of its renovated properties. This situation has resulted in a lack of available houses, which in turn has caused property prices to jump 15% in August year-over-year. As a result, property hunters are taking a step back until something more affordable comes on to the market. Zillow said it has a backlog of houses in its library which it can sell while newer properties are prepped to be sold so the pause might not impact revenue. See the full story here.

2. Cloudflare (NET) continues to rise following the announcement of a partnership with Microsoft (MSFT) on its search engine offerings. The web infrastructure company already made significant gains following the very public failure of Facebook’s (FB) systems earlier this month, comfortably managing a 30x surge in traffic whilst giving expert commentary on the faults behind the crash. Now, its partnership with Microsoft has seen share prices rise 7.8% today and over 23% in the last 5 days, representing fresh all-time highs for the company. The partnership will work to bring better search engine results to customers through more efficient use of web crawling. This process makes up 45% of all web traffic so any improvements made will bode well for Cloudflare and customers alike. Read more here.

3. CEO Tim Cook says it’s all about “Music and the Mac” as Apple (AAPL) fired on all cylinders at last night’s product event, where it unveiled new AirPods, HomePod options, and more. The star of the show, though, was Apple's new Macbook Pro, boasting M1 Pro and M1 Max chips which are 70% faster than the original M1 chip and use far less power than its competitors. Apple has also scrapped its touch bar, which may disappoint some customers, but the main feature is that Apple has brought back the HDMI port and a headphone jack — finally! This showcase bodes well for investors as Apple looks to increase market share across all product categories. You can check out the full story here.

NicoleNicole

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