Launched in 2018, Zillow Offers represented the next step for the company where it would take its large data set of more than 135 million U.S. The setup goes back to the company's vision where it would leverage its market position as the leading real estate site with over 226 million unique monthly users into a revenue-generating flywheel integrating all aspects of the home shopping experience. Several important lessons regarding trusting models and the intricacies of real estate investing. The failure of the "Zillow Offers" group and Homes segment will likely become fodder for Business schools well into the future. Improving financials going forward into what remains a resilient housing market can help return positive sentiment towards the stock. The company benefits from strong brand awareness and a best-in-class platform. Getting past the near-term uncertainties and ongoing corporate restructuring, we believe Zillow can ultimately rebound as it gets back to basics.
We highlight what remains a positive long-term outlook for the company considering the value and attraction of the core business related to broader real estate services and advertising. Ballooning losses in the program forced an exit with a large write-down in the last quarter resulting in a disaster for the stock that is down by more than 70% from the highs of last year. In what is now recognized as a strategy misstep, Zillow built an extensive residential property portfolio through cash offers to sellers, often well-above market rates.
While the company rode a wave of momentum into a surging housing market during the early stages of the pandemic, its fortunes reversed with the failure of its "iBuying" venture referring to the business of reselling homes directly. ( NASDAQ: Z) ( NASDAQ: ZG) is a leader in online real estate listings that connect buyers and renters with sellers, landlords, agents, and lenders.