Is Zillow Making Money?

Therefore, people are buying stock in a company that loses money on its investments that is expanding its investing activities. Ben Graham was right “Mr. Market is insane.” Moreover, it is not clear how Zillow will pay the houses to buy to flip. For instance, Zillow had just $651,058 in cash and equivalents, $66,083 in receivables, and $903,867 in short-term investments on 31 December 2018. Hence, Zillow had assets of $1.892 billion at the end of 2018. Consequently, I think the only ways Zillow can finance the flips are to borrow money or issue collateralized debt. Thus, Zillow is adopting the business model that led to the mortgage catastrophe of 2007 to 2008.

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Nordstrom is Becoming Less Competitive

Nordstrom may never get that market share because Walmart is making a big push in New York. To explain, Walmart’s incubator Store No 8 is testing Jetblack; an algorithm that shops for customers in Manhattan, Vox reports.   Couriers deliver all Jetblack orders within two days and pick up returns for free. Jetblack threatens Nordstrom because it is squarely at affluent urban dwellers. However, Jetblack is one of just many pushes Walmart is making for the upper-middle class market.   In addition, to the experiments Store No. 8 conducts in New York, Walmart owns the men’s fashion brand Bonobos and partners with Lord & Taylor. Consequently, a smart move for Nordstrom is to launch a concierge or join Jetblack.   Obviously, Nordstrom Local will be a perfect support mechanism for a concierge service like Jetblack. For instance, Jetblack couriers could take clothes to Nordstrom Local for tailoring.

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