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Zillow's Move into House Flipping Prompts Stock Downgrade

Donna Fuscaldo

Zillow Group, Inc. ( Z) is getting into the market of buying and selling homes, something that at least one Wall Street watcher isn't happy about. Earlier this week, Zillow announced that it will start flipping homes in Phoenix and Las Vegas and that it is expanding its Instant Offers service. The firm noted that the new business venture has "emboldened" short sellers, or those betting that the stock will decline, because of the lower margins associated with the new business.