NEW YORK (TheStreet) -- Shares of Zillow (Z) popped 5.18% to $119.59 in afternoon trading Monday after the online real estate listing company announced it would shut down its Agentfolio service two years after acquiring it.
Agentfolio allowed home shoppers to share listings with specific parties such as friends or real estate agents and then allowed those parties to directly talk about the listings. Zillow will shut down the service on March 2, 2015, and will not accept new agent customers.
"While there are hundreds of agents using the product daily, our customer base is unfortunately not large enough to continue supporting our loyal users," the company wrote in a memo to clients.
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The news comes after the Federal Trade Commission delayed Zillow's acquisition of rival Trulia (TRLA) last week, as the FTC wanted more information about the deal. The companies agreed to halt the deal until at least February 1, 2015.
More than 3.5 million shares had changed hands as of 1:21 p.m., compared to the average daily volume of 1,342,660.
Separately, TheStreet Ratings team rates ZILLOW INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZILLOW INC (Z) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."