Zillow Flip & Flop

Facebook will make its big announcement today. While we wait, I ran into a fascinating article about the suboptimal performance of Zillow’s real estate frontrunning strategy. In short, they are buying up thousands of homes each month with the goal of flipping them or renting them out. This makes sense because they can act on a listing the moment it is listed, while we have to wait to learn about it from a notification or a search. If the price is right, Zillow can beat its users to the sale. Interestingly, the AI-based investment strategy is not performing. Said differently, they are losing money. I am not surprised that Zillow is competing with its customers. Are you?

Author’s note: This is not a sponsored post. I am the author of this article and it expresses my own opinions. I am not, nor is my company, receiving compensation for it.

About Shelly Palmer

Shelly Palmer is the Professor of Advanced Media in Residence at Syracuse University’s S.I. Newhouse School of Public Communications and the CEO of The Palmer Group, a consulting practice that helps Fortune 500 companies with technology, media and marketing. Named LinkedIn’s “Top Voice in Technology,” he covers tech and business for Good Day New York, writes a weekly column for Adweek, and is a regular commentator on CNN and CNBC and writes a popular daily business blog. He’s the Co-Host of the award-winning podcast Techstream with Shelly Palmer & Seth Everett and he hosts the Shelly Palmer #CryptoWednesday Livestream. Follow @shellypalmer or visit shellypalmer.com.

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