One of the top investing stories of last week was the announcement from Zillow Group Inc. that it is exiting the home buying business. While the news is a negative for Zillow, it could benefit two competitors that went public via SPAC merger.
What Happened
Zillow announced as part of its third-quarter financial results that it is exiting the home business, Zillow Offers. As a result, the company will sell the more than 7,000 houses it owns and also lay off 25 percent of its workforce.With Zillow out of the way, Opendoor Technologies and Offerpad Solutions Inc. could benefit with one less competitor on the market. The exit by Zillow could also signal some headwinds and negatives for online home buying and selling by a company, which could be reflected in upcoming earnings from both companies.
