Zillow stock dives ahead of earnings; analyst report says 66% of homes it bought are now ‘underwater’

A day ahead of its third quarter earnings report, Zillow Group’s stock took a hit on Wall Street as a new analyst report highlighted how many homes purchased by the company are now underwater.

Class A shares of Zillow Group stock were down 8.6% on Monday to close at $96.62.

The latest dive comes two weeks after the Seattle-based real estate company announced that it would not sign any new contracts to buy homes via its home-buying and selling service Zillow Offers. The company blamed a “backlog in renovations and operational capacity constraints” and stock dropped more than 10% on Oct. 18.