FINWIRES · TerminalLIVE
FINWIRES

$ZG

10 stories mentioning ZG

Every FINWIRES story that references ZG, newest first.

Wire

Zillow Faces AI-Related Valuation Overhang Despite Limited Business Risk, RBC Says

Zillow's (ZG) stock faces a persistent artificial intelligence-related overhang despite limited underlying business risk, RBC Capital Markets said.The investment firm said in a Tuesday note that LLM product innovation, along with increasingly sophisticated agentic aggregation capabilities from Alphabet's (GOOG, GOOGL) Google, is likely to remain an overhang for digital marketplaces in the foreseeable future.RBC said Zillow's traffic risk from the overhang is low and the actual business impact is even lower. It estimates profit exposure at just 1% to 4% in a worst-case scenario, assuming indirect traffic between 15% and 20%. However, it noted that a more appropriate discounting of AI's potential deflationary effect on internet marketplaces is warranted.The overhang lowers the ceiling for what investors will pay for internet companies with exposure to horizontal user acquisition, analysts said.RBC has an outperform rating on the company stock and lowered its price target to $70 from $95.Shares of Zillow were down nearly 2% in Wednesday trading.Price: $35.15, Change: $-0.68, Percent Change: -1.90%

$ZG
Housing Recovery Stalls in May as New Listings, Sales Fall Annually, Zillow Says
US Markets

Housing Recovery Stalls in May as New Listings, Sales Fall Annually, Zillow Says

New US home listings and sales dropped on an annual basis in May amid elevated mortgage rates, halting a market recovery, Zillow Group (Z, ZG) said Thursday.New for-sale listings fell 4.1% year over year to 422,956 units last month, while sales declined 2.9% to 341,929 units, according to the real estate marketplace.Although new listings have historically peaked in May or June, sellers pulled back last month. While sales rose on a monthly basis in May, they fell off the historic trend line. Mortgage rates rose past 6.5%, Zillow said."May housing results were disappointing for those hanging on to hope of a stronger year for sales," Zillow Chief Economist Mischa Fisher said.The mortgage payment on a typical home dropped 3.1% annually to $1,861 in May, while home values rose 0.8% sequentially to $368,720, the report showed.Active inventory increased 1% year over year last month, extending a streak of annual gains to 30 consecutive months, though the growth rate decelerated, Zillow said."Inventory is rising, but weekly data suggests it could flatline in the next four weeks." Fisher said. "A June peak for options home shoppers have to choose from would be early on the calendar, possibly foreshadowing slower sales in the second half of the year."On Wednesday, a report by the Mortgage Bankers Association showed that mortgage applications in the US fell in the week ended May 29."The prospect of easing energy prices given the evolving situation in the Middle East brought mortgage rates slightly lower last week," Joel Kan, the MBA's deputy chief economist, said at the time. "The retreat in rates, however, did not lead to an increase in mortgage applications."Price: $35.63, Change: $+0.12, Percent Change: +0.32%

$Z$ZG
Wire

Zillow Faces Listings Fragmentation, New Competitive Risks, RBC Says

Zillow Group (ZG, Z) is facing a challenging environment driven by fragmented real estate listings supply and new competitive developments and will likely need stronger traffic and other key performance trends to improve its stock multiple, RBC Capital Markets said.Alphabet's (GOOG, GOOGL) Google has re-entered real estate listings search more directly, with agentic aggregation demonstrated at the recent Google I/O event, according to the note Wednesday.Meanwhile, Chicago's largest multiple listing service MRED announced it will cut off Zillow from its listings following Zillow's lawsuit against it and Compass alleging collusion to hide listings.MRED accounts for roughly 1.5% to 2% of total US listings and the loss is likely to be partially offset by agents uploading their listings to Zillow on their own, which should result in little or no fundamental impact to Zillow, RBC said.Zillow's leading position in online real estate search still keeps it well positioned in the space but the recent developments have made conditions more challenging for the company in the meantime, the analysts said.RBC has an outperform rating on the company's stock with a price target of $95.Shares of Zillow were down 2.3% in Thursday trading.Price: $36.07, Change: $-0.85, Percent Change: -2.30%

$GOOG$GOOGL$ZG
Research

Research Alert: CFRA Raises View To Buy From Hold On Shares Of Zillow Group, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We reiterate our 12-month price target of $50, which is 22x our 2026 EPS view. Our multiple is a discount to ZG's three-year mean of 40x, which we believe appropriately reflects the overhang from the FTC's antitrust investigation. However, our EPS expectations model continued strong execution of its strategy. We model 2026 revenue of $2.981B (15.4% growth), driven by market share gains and Rentals momentum. We forecast a 25.3% EBITDA margin in 2026, representing 130 bps of expansion, which will be heavily weighted to the second half as significant legal and marketing investments from the first half abate. We raised our 2026 EPS to $2.27 from $2.00 and 2027 to $3.00 from $2.50. Ultimately, ZG's valuation, trading at a 50% discount, offers a compelling entry point. We believe the market is overly focused on near-term litigation and macroeconomic headwinds, while underappreciating the AI-accelerated earnings power that will be unlocked as ZG continues executing amid a normalizing housing market.

$ZG
Research

Research Alert: CFRA Raises View To Buy From Hold On Shares Of Zillow Group, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We reiterate our 12-month price target of $50, which is 22x our 2026 EPS view. Our multiple is a discount to ZG's three-year mean of 40x, which we believe appropriately reflects the overhang from the FTC's antitrust investigation. However, our EPS expectations model continued strong execution of its strategy. We model 2026 revenue of $2.981B (15.4% growth), driven by market share gains and Rentals momentum. We forecast a 25.3% EBITDA margin in 2026, representing 130 bps of expansion, which will be heavily weighted to the second half as significant legal and marketing investments from the first half abate. We raised our 2026 EPS to $2.27 from $2.00 and 2027 to $3.00 from $2.50. Ultimately, ZG's valuation, trading at a 50% discount, offers a compelling entry point. We believe the market is overly focused on near-term litigation and macroeconomic headwinds, while underappreciating the AI-accelerated earnings power that will be unlocked as ZG continues executing amid a normalizing housing market.

$ZG
Research

Research Alert: Zg Beats Q1 Ebitda But Guides Q2 Profitability Lower On Legal And Ad Costs

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:ZG's Q1 revenue of $708M exceeded consensus and grew 18% Y/Y, driven by Mortgages (+56%) and Rentals (+42%) segments, while core Residential grew a modest 8%. Adjusted EBITDA of $182M beat consensus $168.39M despite 160-bp margin headwind from legal expenses, supported by strong cost control and 44% Y/Y adjusted free cash flow growth. However, Q2 adjusted EBITDA guidance of $150M-$165M fell substantially short of consensus $190.55M due to front-loaded advertising spend and $20M in incremental legal costs. Management reiterated full-year mid-teens revenue growth and margin expansion, implying significant 2H recovery. We believe legal risks create meaningful uncertainty, with ongoing litigation pressures coinciding with moderating internal traffic metrics (average monthly users down 3% Y/Y) and reduced cash position of $788M vs $1.3B in Q4. In our view, the company faces execution risk navigating legal headwinds while maintaining growth momentum in a challenging environment.

$ZG
US Markets

New Home Listings Growth Outpaces Sales For First Time in 2026, Zillow Says

New for-sale home listings in the US grew at a faster rate annually than sales for the first time this year as elevated mortgage rates stalled recovery, Zillow Group (Z, ZG) said Wednesday.New listings rose 2.1% year over year to 426,356 units in April, while sales eased 0.4% to 323,631 units, according to the real estate marketplace. Active inventory increased 3.7% last month, putting the total number of for-sale homes at 1.3 million."The spring rebound we anticipated at the start of the year and that produced the stronger sales figures in March was put on pause in April by higher rates," Zillow Chief Economist Mischa Fisher said. "Still, someone who held off in 2025 hoping conditions would improve has seen that improvement."Last week, the average interest rate for 30-year fixed mortgages with conforming loan balances of $832,750 or less increased to 6.45% from 6.37% sequentially, a report by the Mortgage Bankers Association showed Wednesday.The monthly mortgage payment on a typical home in the US dropped 3.4% annually to $1,829 last month, while home values rose 0.7% to $366,712, Zillow said.The share of listings with a price reduction was 23.5% in April, down one percentage point from a year earlier, but up 0.9 percentage point sequentially.Despite the recent rise in mortgage rates, buyers who waited out the market of 2025 are entering on slightly better terms this spring, with more options, improved affordability and a little more decision time, according to Zillow."With more homes to choose from and lower monthly costs than a year ago, the math has shifted in favor of buyers even if the moment may not feel like it," Fisher said. "There's still plenty of reason for optimism that we will see a quick rebound if rates cooperate."On Tuesday, government data showed that new-home sales in the US grew past Wall Street's estimates for March, driven by a demand surge in the Northeast region.Price: $44.82, Change: $+1.28, Percent Change: +2.94%

$Z$ZG
Wire

Zillow's Lead-Distribution Strategy Working Unevenly, RBC Says

Zillow Group (ZG) faces a widening split between top-performing agents and those struggling to keep pace, RBC Capital Markets said Monday in a report.RBC found that Zillow's lead-distribution system is increasingly favoring larger, more experienced teams, with buyer activity flat to slightly down overall while flowing disproportionately to the strongest agents. That dynamic is helping high-volume agents, particularly those using Zillow Home Loans, where preapproval activity and lead conversion remain solid, the report said.Some agents continue to fall short of Zillow Home Loans' preapproval benchmarks, a miss that hurts lead quality and can jeopardize their Flex or Preferred status, the report said. Those pressures are creating "meaningful" resistance among parts of the agent base, RBC said.Zillow's strategy, while technically working, still doesn't fit the needs or operating style of certain agents and clients, RBC said. Industry shifts, including more private listings and evolving rules for multiple listing services, don't appear likely to materially change Zillow's competitive position, the report said.Q2 guidance is expected to land in line with or slightly below consensus "given macro headwinds, the report said. RBC trimmed its Q2 EBITDA forecast and left H2 expectations intact.RBC rates Zillow stock outperform with a price target of $95. Q1 results are due May 6.Price: $44.83, Change: $-0.86, Percent Change: -1.88%

$ZG
US Markets

Pending Home Sales Post Biggest Decline in 3 Months Amid High Mortgage Rates, Redfin Says

US pending home sales declined the most in three months during the four weeks ended April 5 as mortgage rates jumped to the highest level since September, Redfin said Thursday.Pending sales fell 2.4% year-over-year to 87,473 units as the weekly mortgage rate jumped to 6.46%, according to the online real estate brokerage."The Iran war and the turmoil it's causing in the markets are the reason mortgage rates are rising," Redfin Data Journalist Dana Anderson said. "The war is also contributing to widespread economic uncertainty, sidelining many would-be homebuyers."The ceasefire that was announced on Tuesday sent oil prices down and rallied markets, and it could help bring mortgage rates back down into the low-6% range."Sales plummeted by more than 15% each in Providence, Rhode Island, Houston and New York, while West Palm Beach, Florida, led the gains.New listings fell 2.6% year-over-year to 101,059 during the four week period, the largest decline in a month."While new listings are losing steam, it's still a strong buyer's market almost everywhere in the country," Anderson said.Newly pending listings grew in March at the fastest pace for the month since 2021 despite an increase in mortgage rates, Zillow Group (Z, ZG) said Monday.Rising mortgage rates and a 2.2% annual increase in home-sale prices -- the biggest in a year -- have pushed the monthly mortgage payment to $2,750, up 0.2% from a year earlier, according to the Redfin report.

$Z$ZG
US Markets

Weekly Mortgage Applications Decrease Amid Elevated Rates, Economic Uncertainty

Mortgage applications in the US fell last week amid elevated rates and continued macro uncertainty, the Mortgage Bankers Association said Wednesday.The market composite index, which measures loan application volume, dropped 0.8% for the week through Friday on a seasonally adjusted basis. Without adjustments, the index decreased 1% week over week."Higher mortgage rates and continued economic uncertainty weighed down on mortgage applications again last week," said Joel Kan, the MBA's deputy chief economist. "Many potential refinance borrowers have been frozen out by the sharp increase (in mortgage rates) over the past month."In late March, mortgage rates jumped to 6.38% from 5.98% at the end of the previous month, real estate marketplace Zillow Group (Z, ZG) said earlier this week, citing Freddie Mac data.Late Tuesday, the US and Iran agreed to a two-week ceasefire. The war, which began at the end of February, spread across the Middle East and curtailed shipments through the crucial Strait of Hormuz, driving up energy prices.The average interest rate for 30-year fixed mortgages with conforming loan balances of $832,750 or less fell to 6.51% from 6.57% a week ago, the MBA reported Wednesday. For loan balances higher than that amount, the rate dropped to 6.54% from 6.59%. For 15-year loans, the rate edged higher to 5.90% from 5.89% week to week.The refinance index moved down 3% on a weekly basis, with the pace of refinance applications at its lowest level since December, according to Kan.The seasonally adjusted purchase index rose 1% from a week earlier. Without adjustments, the index increased 1% sequentially, and was 7% lower than a year earlier, representing its first annual decline since January 2025, Kan said."Overall purchase activity has also been adversely impacted by current conditions," Kan said. "However, certain loan types and geographic segments are faring better than others because of lower rates on (adjustable-rate mortgage) and (Federal Housing Administration) loans, as well as growing housing inventory in some local markets."Fixed-rate mortgages with 30-year terms backed by the FHA fell to 6.22% from 6.25% the week before. The share of FHA loans, which are often used by first-time home buyers and can involve smaller down payments, inched lower to 19.3% of total applications from 19.5%, according to the MBA.Price: $41.84, Change: $+1.05, Percent Change: +2.57%

$Z$ZG