$ZG

Wells Fargo lowered Zillow Group's (ZG) price target to $31.00 from $35.00, maintaining an Equal-Weight rating. GuruFocus values ZG at $80.20, suggesting a 63.6% undervaluation at its current price of $29.16. The company has a GF Score of 65, indicating moderate performance with strengths in financial strength and growth.

Zillow's September report shows U.S. existing home sales fell 2.5% YoY, with newly pending sales down 8.5%. Mortgage rates hit 7.28%, the highest since Nov. 2023, pushing typical mortgage payments up 6.7% YoY. Home values rose just 1% YoY. Rents increased 2.7% YoY, the biggest gain since Apr. 2025. Inventory was up 2.5% YoY, but sales remain muted due to higher costs.

The US Supreme Court declined to hear Zillow Group's appeal in a 2021 investor lawsuit, allowing the case to proceed. The lawsuit alleges Zillow misled investors about its home-flipping business, Zillow Offers, which was shut down in November 2021. The company reported a $300 million loss and announced workforce cuts. Investors claim Zillow's leadership made overly optimistic statements before the shutdown.

The US Supreme Court declined to hear Zillow Group's appeal to dismiss a class action lawsuit. The case, filed in 2021, alleges Zillow misled investors about its failed home-flipping venture, Zillow Offers. The 9th Circuit Court previously allowed the case to proceed, citing Zillow's disclosures that revealed new information about its home-pricing struggles.

ARK ETFs bought shares of Rocket Lab (RKLB), BWX Technologies (BWXT), Intellia Therapeutics (NTLA), and Veracyte (VCYT), while selling shares of Alphabet (GOOGL), Palantir (PLTR), and Zillow (Z). The transactions reflect ARK's strategy of investing in high-growth sectors and trimming positions in established tech companies.

Zillow Group Inc. won a lawsuit alleging it shared consumer data with Microsoft Corp. and others without consent. Judge James L. Robart dismissed the case, ruling the plaintiffs lacked standing or failed to prove claims under Washington law.

In 2026, multiple tech companies announced layoffs. Microsoft cut 4,800 jobs, mostly in Xbox. Oracle laid off 21,000, citing AI adoption. Uber reduced its workforce by 3,300. Apple, TikTok, Zillow, Etsy, Intel, and Visa also announced job cuts. Some companies attributed layoffs to AI investments or restructuring efforts.

Zillow reports a 21.4% rise in engaged home shoppers in Q2 2026, with 4.8 shoppers per listing, while home sales increased only 4.5%. High borrowing costs and affordability concerns are cited as constraints. Regional competition varied, with Buffalo, NY, having the highest ratio (10.5:1). Luxury and larger homes saw more interest, with luxury listings attracting 8 shoppers per listing, up 25.7% year-over-year.

Zillow Group and Realtor.com launched a joint Preview feature for pre-market home listings, offering enhanced visibility and tools. This initiative aims to capture early buyer intent data, potentially improving monetization. Analysts project $3.9B in revenue and $525.9M in earnings for Zillow by 2029, with a 61% potential upside. However, execution risks and market competition remain key concerns.

Zillow Group (Z) fell 7.4% as higher mortgage rates pressured housing-related stocks. The 30-year fixed mortgage rate rose to 7.12%, its highest in over two years, while the 10-year Treasury yield climbed above 5.1%. Zillow's August report showed declines in home sales and pending listings, citing mortgage rates as a drag. Institutional investors have recently adjusted their positions in Z.