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A comment on Zillow to stop flipping homes, loses more than $550M, lays off 25% of staff. Parent comment

Re:Zillow to stop flipping homes, loses more than $550M, lay... by yalogin on Tuesday November 02, 2021 @06:14PM (#29088170)
If MBAs and financial models can predict slowdowns, we won't have them at all. If anything ML models will exacerbate the situation IMO and they probably relied on them too much and bought more than they should. Of course what I said is also a projection (without even an ML model), so that is not accurate either :)
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Re:Zillow to stop flipping homes, loses more than $550M, lay... by HWR_14 on Tuesday November 02, 2021 @08:30PM (#29089555)
The models don't have to predict a slowdown. They just have to account for the total amount of risk Zillow is assuming.
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Re:Zillow to stop flipping homes, loses more than $550M, lay... by beamatronic on Wednesday November 03, 2021 @01:29PM (#29097756)
Which should really just boil down to carrying costs vs future expected profits
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Re:Zillow to stop flipping homes, loses more than $550M, lay... by HWR_14 on Wednesday November 03, 2021 @06:57PM (#29101583)
Their risk model should really account for the possibility that housing prices go down. I mean, there were famously in 2008 banking firms whose models didn't even allow for that.
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