Zillow sunsetting Closing Services ‘somewhat surprising,’ says Stephens

Stephens analyst John Campbell notes that HousingWire reported that Zillow is sunsetting its Zillow Closing Services business and in an email to customers the company noted that this decision was based on its view that ZCS is not the “tech-forward and integrated product” that its customers/partners need. This news is “a bit surprising” given Zillow’s focus and heightened investments in integrating its products, but “sunsetting an organically-built product does not necessarily equate to an outright change in strategic direction,” the analyst tells investors. Stephens, which believes that Zilllow “will have plenty of options at hand,” reiterates its Overweight rating and $60 price target on the shares.