Zillow Group Inc. shares skyrocketed more than 9% in the extended session Thursday after the real estate company reported second-quarter revenue well above Wall Street expectations and said work-from-home trends have led more people to think about moving. Zillow said it lost $84.5 million, or 38 cents a share, in the quarter, compared with a loss of $72 million, or 35 cents a share, in the year-ago period. Revenue rose 28% to $768 million, the company said. Analysts polled by FactSet expected a GAAP loss of 68 cents a share on sales of $615 million. “Zillow’s second-quarter results are even better than we had hoped, and firm up our belief that powerful tailwinds in both real estate and technology are rapidly converging, with Zillow at the nexus,” Chief Executive Rich Barton said in a statement. The COVID-19 pandemic and work-from-home policies “are inspiring people to rethink their homes and consider moving,” he said. Zillow said it ended the quarter with the highest cash balance in its history, or cash and investments growing to $3.5 billion from $2.6 billion at the end of first quarter. Its home buying and selling business started the quarter with home acquisitions temporarily paused due to market uncertainty, but it has resumed buying and selling homes, ending the quarter with 440 homes in inventory, the company said. “Zillow Offers is now actively purchasing homes in all 24 markets where it previously operated,” it said. Shares of Zillow ended the regular trading day up 1.2%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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