Zillow and Sprout Social's Growth Prospects Amid Economic Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 27 2026
0mins
Source: NASDAQ.COM
- Industry Dynamics: The Internet Services sector is influenced by macro factors such as inflation, interest rates, and labor markets, with high rates pressuring capital-intensive firms, leading to muted investor sentiment despite overall economic improvement.
- AI Investment Trends: Zillow and Sprout Social are heavily investing in artificial intelligence to enhance service quality and operational efficiency, with Zillow transitioning into a 'housing super-app' that integrates search, financing, and transaction support, expected to drive revenue growth.
- Earnings Expectation Changes: Zillow anticipates revenue growth of 15.1% and 13.4% for 2026 and 2027, respectively, while Sprout Social expects 7.8% and 14.6% growth in revenue and earnings for 2026, indicating resilience amid market uncertainties.
- Market Valuation Status: Despite the high valuation of the Internet Services industry, with a current P/E ratio of 23.90, slightly above the historical median, the sector's overall return of 65.6% surpasses both the tech sector and the S&P 500, highlighting potential investment opportunities.
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Analyst Views on Z
Wall Street analysts forecast Z stock price to rise
8 Analyst Rating
3 Buy
5 Hold
0 Sell
Moderate Buy
Current: 46.860
Low
70.00
Averages
87.40
High
100.00
Current: 46.860
Low
70.00
Averages
87.40
High
100.00
About Z
Zillow Group, Inc. helps people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and buying, selling, financing, and renting experiences. The Company’s affiliates, subsidiaries, and brands include Zillow, Zillow Premier Agent, Zillow Home Loans, Zillow Rentals, Trulia, Out East, StreetEasy, HotPads, ShowingTime+, Spruce, and Follow Up Boss. It helps renters, buyers, sellers, and real estate professionals across all their residential real estate needs through its housing super app, which serves as an ecosystem of connected solutions for the tasks and services related to moving. It provides integrated transaction experience for movers through Zillow, its network of partners, its affiliated brands, and through a comprehensive suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Follow Up Boss and Spruce. It offers multifamily property managers a variety of advertising products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Refinance Rate Overview: The 30-year fixed refinance rate is at 6.12%, and the 15-year fixed refinance rate is 5.57%, suggesting that borrowers may face higher refinancing costs, which could impact their financial decisions and market liquidity.
- Adjustable Rate Mortgages: The 5/1 ARM rate is 6.17%, and while the initial rate is lower, borrowers must be cautious of potential increases after the lock-in period, which could lead to future financial strain, especially in a rising rate environment.
- Homebuyer Strategies: To secure lower mortgage rates, borrowers should aim to increase their down payment, improve credit scores, and reduce debt-to-income ratios, which will help them obtain more favorable loan terms in a competitive market.
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- Class Action Preparation: Shareholders who purchased Zillow securities may be entitled to compensation through a contingency fee arrangement, highlighting investor concerns over the company's transparency and potentially prompting more investors to seek legal recourse.
- FTC Lawsuit Impact: On September 30, 2025, the Federal Trade Commission (FTC) sued Zillow and Redfin for an unlawful agreement to suppress rental advertising competition, resulting in a 4.6% drop in Zillow's Class C stock on October 1, 2025, reflecting market worries about the company's compliance.
- Law Firm Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, recovering over $438 million for investors in 2019 alone, showcasing its expertise in handling similar cases and potentially attracting more affected investors to join the lawsuit.
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- Mortgage Rate Decline: According to Zillow, the average 30-year fixed mortgage rate has dropped to 6.02%, down 13 basis points from last week, indicating increased attractiveness for homebuyers and potentially stimulating real estate activity.
- Short vs. Long Term Choices: The 15-year fixed mortgage rate stands at 5.50%, which, while resulting in higher monthly payments, significantly reduces total interest paid compared to a 30-year loan, making it suitable for buyers focused on long-term financial health.
- Refinance Rate Overview: The 30-year refinance rate is currently at 6.12%, slightly higher than purchase loan rates, reflecting intense competition in the refinance market, prompting buyers to choose wisely to minimize long-term costs.
- Market Expectations: Despite the current decline in rates, the MBA forecasts that the 30-year mortgage rate will hover around 6.30% in the coming years, urging homebuyers to stay informed about market trends for informed decision-making.
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- Short-Term Rate Changes: The 15-year fixed mortgage rate has decreased to 5.50%, down 14 basis points, reflecting an overall reduction in borrowing costs that enhances affordability for buyers, potentially driving a recovery in the real estate market.
- Diverse Loan Options: The current 30-year VA loan rate stands at 5.57%, while the 15-year VA loan rate is at 5.34%, with these declines providing more attractive financing options for veterans, which could boost related homebuying activities.
- Refinancing Market Dynamics: The 30-year refinancing loan rate is at 6.12%, indicating increased competition in the refinancing market, as borrowers may seek lower rates to reduce long-term financial burdens, thereby stimulating overall economic activity.
See More
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- FTC Lawsuit Impact: On September 30, 2025, the Federal Trade Commission (FTC) sued Zillow and Redfin over an illegal agreement to suppress rental advertising competition, resulting in a 4.6% drop in Zillow's Class C stock on October 1, 2025, highlighting market concerns regarding its compliance.
- Class Action Preparation: The firm is preparing a class action to recover investor losses, emphasizing the importance of selecting qualified counsel with a proven track record to effectively protect investor rights.
- Firm's Strength: Rosen Law Firm secured over $438 million for investors in 2019 alone and was ranked No. 1 by ISS Securities Class Action Services in 2017, demonstrating its strong capabilities and extensive experience in securities class actions.
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- Securities Violation Investigation: The Schall Law Firm is investigating Zillow Group for potential violations, focusing on whether the company made false or misleading statements or failed to disclose critical information, which may have led to investor losses.
- FTC Lawsuit Context: Zillow was sued by the FTC on September 20, 2025, for an unlawful agreement with Redfin that suppresses rental advertising competition, affecting millions of Americans seeking rental housing.
- Investor Rights Protection: The Schall Law Firm encourages shareholders who suffered losses to participate in the lawsuit and offers free consultations, demonstrating a commitment to protecting investor rights.
- Legal Advertising Notice: This press release may be considered Attorney Advertising in certain jurisdictions, underscoring the firm's expertise and focus on securities class action lawsuits.
See More
Mortgage Rates Continue to Decline, Approaching 6%
- Current Mortgage Rates: According to Zillow data, the average 30-year fixed mortgage rate is 6.02%, while the 15-year fixed rate stands at 5.50%, indicating that lower rates may stimulate homebuying demand and support a recovery in the real estate market.
- Refinance Rate Overview: The 30-year fixed refinance rate is at 6.12%, and the 15-year fixed refinance rate is 5.57%, suggesting that borrowers may face higher refinancing costs, which could impact their financial decisions and market liquidity.
- Adjustable Rate Mortgages: The 5/1 ARM rate is 6.17%, and while the initial rate is lower, borrowers must be cautious of potential increases after the lock-in period, which could lead to future financial strain, especially in a rising rate environment.
- Homebuyer Strategies: To secure lower mortgage rates, borrowers should aim to increase their down payment, improve credit scores, and reduce debt-to-income ratios, which will help them obtain more favorable loan terms in a competitive market.
See More
Rosen Law Firm Investigates Securities Claims Against Zillow Group
- Securities Claims Investigation: Rosen Law Firm is investigating potential securities claims against Zillow Group, Inc. (NASDAQ: Z, ZG) for possibly issuing materially misleading business information, indicating legal risks that could negatively impact the company's stock performance.
- Class Action Preparation: Shareholders who purchased Zillow securities may be entitled to compensation through a contingency fee arrangement, highlighting investor concerns over the company's transparency and potentially prompting more investors to seek legal recourse.
- FTC Lawsuit Impact: On September 30, 2025, the Federal Trade Commission (FTC) sued Zillow and Redfin for an unlawful agreement to suppress rental advertising competition, resulting in a 4.6% drop in Zillow's Class C stock on October 1, 2025, reflecting market worries about the company's compliance.
- Law Firm Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, recovering over $438 million for investors in 2019 alone, showcasing its expertise in handling similar cases and potentially attracting more affected investors to join the lawsuit.
See More
U.S. Mortgage Rates Continue to Decline
- Mortgage Rate Decline: According to Zillow, the average 30-year fixed mortgage rate has dropped to 6.02%, down 13 basis points from last week, indicating increased attractiveness for homebuyers and potentially stimulating real estate activity.
- Short vs. Long Term Choices: The 15-year fixed mortgage rate stands at 5.50%, which, while resulting in higher monthly payments, significantly reduces total interest paid compared to a 30-year loan, making it suitable for buyers focused on long-term financial health.
- Refinance Rate Overview: The 30-year refinance rate is currently at 6.12%, slightly higher than purchase loan rates, reflecting intense competition in the refinance market, prompting buyers to choose wisely to minimize long-term costs.
- Market Expectations: Despite the current decline in rates, the MBA forecasts that the 30-year mortgage rate will hover around 6.30% in the coming years, urging homebuyers to stay informed about market trends for informed decision-making.
See More
Mortgage Rates Drop to Five-Week Low Amid Easing Middle East Tensions
- Rate Decline Trend: According to Zillow data, the current 30-year fixed mortgage rate is 6.02%, down 13 basis points from last week, indicating a positive market response to easing Middle East tensions, which may stimulate homebuying demand.
- Short-Term Rate Changes: The 15-year fixed mortgage rate has decreased to 5.50%, down 14 basis points, reflecting an overall reduction in borrowing costs that enhances affordability for buyers, potentially driving a recovery in the real estate market.
- Diverse Loan Options: The current 30-year VA loan rate stands at 5.57%, while the 15-year VA loan rate is at 5.34%, with these declines providing more attractive financing options for veterans, which could boost related homebuying activities.
- Refinancing Market Dynamics: The 30-year refinancing loan rate is at 6.12%, indicating increased competition in the refinancing market, as borrowers may seek lower rates to reduce long-term financial burdens, thereby stimulating overall economic activity.
See More
Rosen Law Firm Investigates Potential Securities Claims Against Zillow Group
- Securities Claims Investigation: Rosen Law Firm announces an investigation into Zillow Group for potentially issuing materially misleading business information, indicating that shareholders may be entitled to compensation without any out-of-pocket costs if they purchased Zillow securities.
- FTC Lawsuit Impact: On September 30, 2025, the Federal Trade Commission (FTC) sued Zillow and Redfin over an illegal agreement to suppress rental advertising competition, resulting in a 4.6% drop in Zillow's Class C stock on October 1, 2025, highlighting market concerns regarding its compliance.
- Class Action Preparation: The firm is preparing a class action to recover investor losses, emphasizing the importance of selecting qualified counsel with a proven track record to effectively protect investor rights.
- Firm's Strength: Rosen Law Firm secured over $438 million for investors in 2019 alone and was ranked No. 1 by ISS Securities Class Action Services in 2017, demonstrating its strong capabilities and extensive experience in securities class actions.
See More
Schall Law Firm Investigates Zillow for Securities Violations
- Securities Violation Investigation: The Schall Law Firm is investigating Zillow Group for potential violations, focusing on whether the company made false or misleading statements or failed to disclose critical information, which may have led to investor losses.
- FTC Lawsuit Context: Zillow was sued by the FTC on September 20, 2025, for an unlawful agreement with Redfin that suppresses rental advertising competition, affecting millions of Americans seeking rental housing.
- Investor Rights Protection: The Schall Law Firm encourages shareholders who suffered losses to participate in the lawsuit and offers free consultations, demonstrating a commitment to protecting investor rights.
- Legal Advertising Notice: This press release may be considered Attorney Advertising in certain jurisdictions, underscoring the firm's expertise and focus on securities class action lawsuits.
See More
