Technology

Zillow’s share price takes a hit as Citron strikes again

Conclusions of report by 'short-seller's research firm' called into question
Published on Sep 20, 2013

Real estate portal Zillow's stock price has taken a hit today following the release of a scathing report from Citron Research calling the company's second quarter a "complete disaster" and criticizing its business model.Citron Research calls itself an online stock commentary website, though the Associated Press has described it as a "short-seller's research firm." Short-sellers make money by betting that a stock they sell will drop in price. Citron published a similar report last year questioning the company's reliance on selling leads to real estate agents and brokers.Zillow's stock price started out the day at $98.45 per share and dipped below $90 at times during heavy trading today, according to Yahoo Finance, making up up some of those losses in the afternoon.Citron's 12-page report blasted the company for ramping up its sales and marketing expenses in order to "juice" revenues in the second quarter."Zillow spent more getting revenue than the revenue itself. Is thi...