Shares of online home sales site Zillow were down more than 16 percent by the close on Tuesday, marking the company's worst day in nearly seven years.
Closing at $49.40 per share, the stock recovered some of its losses from earlier in the day, when the price was as low as $48.26 in morning trading. However, Zillow has not fallen as much in a single day since November 2011, when it shed 16.49 percent.
The drop followed Monday's after-the-bell earnings report that revealed uncertainty around "several moving parts" within the company. The company announced disappointing quarterly revenue, lowered full-year guidance based on slower-than-expected growth of a key division, and unveiled plans to acquire a national mortgage lender to assist with home purchases.
"Zillow reported Q2 results that revealed several moving parts," analysts for Canaccord wrote in a note Tuesday. "There are enough dislocations in the quarter to create a period of negative sentiment in the near term."