1/9/2024 0 Comments Lazy definition![]() ![]() As a result, valuation took another hit as the stock traded eventually traded below $60 for the first time in nearly 16-months. A week later, it was publicized that Zillow was looking to unload roughly 9,800 homes it already owns - plus another 8,200 it was in the process of buying, with Zillow expected to lose between 5% to 7% (WSJ). Moreover, ZG would cut a quarter of its workforce, mainly from Zillow Offers. On November 3, ZG announced a surprise loss, driven by Zillow Offers which the firm announced would be shut down. ZG lost about 10% in value that day, though the stock soon recovered. On October 18, it was reported that ZG would no longer acquire homes through Zillow Offers as the firm looked to work down its backlog. Management also touted that “the business model has proven quite durable” and the housing market was supported by the “great reshuffling” as COVID drove more to relocate from cities and employers. In August, ZG noted plans for a robust hiring spree to increase its workforce by 40% in 2021, the bulk for its Zillow Offers unit. In February 2021, ZG referenced new risk factors associated with their Zillow Offers business. Nearly all of them were tied to Zillow Offers, with mentions of competitor efforts to offer a similar service and Zillow’s difficulty to “evaluate potential future performance of Zillow Offers without the benefit of established long-term track records,” either through itself or by competitors. There were also significant changes to the language of repeated risk factors, those listed across earlier statements (see below). In their words, these fresh risks included, “Our Zillow Offers Business Depends on Our Ability to Accurately Value Homes and Manage Inventory and a Failure to Do So May Have an Adverse Effect on Our Business and Financial Results,” and “Our Zillow Offers Business is Dependent on Our Ability to Expeditiously Sell Inventory…” All seven risk factors referenced Zillow Offers, ZG’s program for buying homes directly from owners, then reselling them in the open market. That month the company also released its 10-K, which included seven new risk factors not shown in the prior year’s annual report. In February, ZG hit an all-time high at $212.40. Image Source: Google ZG Stock Hits All Time-High 10-K Filings Foreshadow Drop In 2018, Zillow began to directly buy houses and quickly resell them on the open market to take advantage of the surging real estate market.Īfter peaking in February 2021, Zillow Group (ZG) stock value experienced a long decline throughout the year. Zillow, along with Trulia, which it acquired in 2015, were the first to offer an online real estate marketplace. ![]() To understand the limitations of lazy prices and the importance of getting a complete picture, look at Zillow Group (ZG). A more negative tone in communications.Management discussion and analysis (MD&A).They found the most impactful textual signifiers were: Changes within the language of financial documents, even subtle ones, can impart valuable information. In it, they explore the connection between changes in the language within a company’s financial statements and the implications in the future performance of the company’s stock. The term “lazy prices” was coined by Lauren Cohen, Chris Malloy, and Quoc Nguyen in their seminal work, Lazy Prices. In this article, we’ll show what that means, explain why it matters, and share a very public example of lazy prices in action. The result? An effect called “lazy prices.” In too many cases, they follow the numbers while the narrative gets pushed aside. It seems like a never-ending endeavor as analysts often find themselves knee-deep in calculations and conversations as to what stock is over or undervalued. Podcast VerityData experts demystify insider signals that drive differentiated ideas.Blog Covering investment ideas, data analysis, and productivity best practices.Newsroom Press releases and media articles covering Verity.Careers We’re always looking for smart, ambitious team members.Leadership Decades of industry experience leading the way forward at Verity. ![]() Company Overview Our mission is to provide the best-possible software solutions and data intelligence to our customers.Who We Serve Startups to global multi-strategy funds drive outperformance with Verity.VerityESG Engagement tracker for ESG & impact investing.Drive productivity & collaboration from anywhere. VerityRMS Modern research management system.VerityData High-integrity primary datasets. ![]()
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