Shares of digital real estate company Zillow Group (NASDAQ:ZG) (Z) have suffered a significant decline over the past few weeks on investor concerns surrounding its recently announced suspension of house buying. Furthermore, the supply constraints that have stifled the housing sector’s expansion might impede the company's growth in the near term. So, is it worth betting on the stock now? Let’s discuss.Digital real estate company Zillow Group Inc . (Z), which is based in Seattle, Wash., operates real estate brands on mobile applications and websites in the United States. The company offers selling, buying, renting, or financing with transparency and a nearly seamless end-to-end service. Its portfolio includes Zillow, Zillow Offers, Zillow Closing Services, Zillow Home Loans, Trulia, StreetEasy, and HotPads. The stock has declined 16.7% in price over the past three months and 2.4% over the past month.
Last week, the company declared the suspension of its home-buying operation for the rest of 2021, which caused some analysts concern that Z has too many properties in its inventory, signifying a decline in demand. This caused the stock to decline 10% in price last week.
Furthermore, closing the last trading session at $92.21, Z is trading 55.7% below its 52-week high of $208.11, which it hit on February 16, 2021, signaling a downtrend. In addition, Z’s weak profitability and premium valuation could make matters worse.