Zillow’s stock dropped 3% today and many are wondering if it has anything to do with Amazon.com? Amazon who has been taking on every kind of company has recently decided to expand to offer real estate services. Amazon posted a “Hire a Realtor” webpage in its professional services marketplace, suggesting that it will become a competition with Zillow’s real estate marketing business. Currently Amazon has removed the page from its site, but its definitely a peek into what Amazon has up it’s sleeve.
Zillow Group generates its revenue by selling advertising to real estate agents, property managers, mortgage lenders and other home-related companies. About $175 million or 70% of it’s revenue in the first quarter came from “Premier Agent Revenue.”
Zillow also had Redfin as it’s most recent competitor, it’s unclear whether or not Amazon’s entry into real estate services will affect Redfin. When Amazon launched in-house installation and repair teams to set up smart-home gadgets it hurt Best Buy tremendously wiping out almost $1 Billion of its market capitalization.