Zillow's Mixed Q4 Results Lead to Share Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Benzinga
- Earnings Highlights: Zillow reported Q4 revenue of $654 million, surpassing analyst expectations of $650.29 million, although adjusted EPS of 39 cents fell short of the 40-cent consensus, indicating potential in revenue growth but pressure on profitability.
- Industry Performance: The total revenue increased by 18% year-over-year, outperforming the broader residential real estate sector, suggesting Zillow's competitive strength in a challenging market environment.
- Forward Guidance: The company provided Q1 revenue guidance of $700 million to $710 million, exceeding analyst estimates of $690.33 million, reflecting a positive outlook that may attract investor interest.
- Technical Analysis: Zillow's stock is currently trading 17.2% below its 20-day SMA and 26.1% below its 100-day SMA, indicating a bearish trend in the short term, although an RSI of 27.60 suggests an oversold condition, indicating potential for a rebound.
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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: 43.820
Low
70.00
Averages
87.40
High
100.00
Current: 43.820
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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- Legal Costs and Competitive Pressure: In the near term, legal expenses and new rivals are weighing on Zillow's valuation; however, if legal spending normalizes and the housing market recovers, it could benefit the company in the long run.
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See More
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See More
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- Surge in Rental Demand: The significant increase in rental usage highlights Zillow's growing ability to aggregate demand in the housing market, laying a foundation for future revenue growth.
- Platform Potential: Should Zillow successfully expand its platform to encompass both renting and buying homes, the upside for its stock could be tremendous, potentially attracting more investor interest.
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See More
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- Operating Margin Improvement: AWS achieved a 35% operating margin, slightly widening from the previous quarter, indicating positive progress in cost control and efficiency enhancement, thereby strengthening its profitability.
- Impact of AI Technology: AWS CEO Matt Garman stated that while market fears regarding AI models potentially slowing software company growth are overblown, AI is indeed a disruptive force that will change how software is consumed and built, emphasizing the necessity for continuous innovation.
- Growing Customer Demand: Garman highlighted that customer demand for computing technology and infrastructure will continue to rise, whether through self-building, AI-based solutions, or purchasing from SaaS vendors, a trend that will drive AWS's future business expansion.
See More
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- Market Panic Overreaction: AWS Chief Matt Garman stated that investor fears regarding AI models potentially slowing software company growth are overblown, emphasizing that core business metrics have not deteriorated, reflecting an excessive market reaction to technology stocks.
- AI-Driven Industry Transformation: Garman noted that AI will change how software is consumed and built, and while large SaaS providers face challenges, they still have an advantage in innovation and must continuously evolve to avoid disruption.
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