Algorithms · November 2021Gaffe level: Feral
Zillow's Pricing Algorithms Bought Thousands of Homes It Could Not Sell
Zillow cranked up its pricing algorithms, overpaid for a mountain of houses, then shut down the entire home-flipping business after losing $381 million in one quarter and writing down over half a billion dollars. The algorithm could not predict the future, so neither could the business built on it.
Source: RISMedia