Compass Drops Lawsuit, Boosting Zillow's Stock Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 18 2026
0mins
Should l Buy ZG?
Source: stocktwits
- Lawsuit Conclusion: Compass filed a lawsuit in June claiming Zillow engaged in anticompetitive practices by restricting listings, and its voluntary dismissal has ended a prolonged legal dispute, alleviating legal burdens for Zillow and potentially improving its financial performance.
- Stock Price Surge: Following Compass's lawsuit withdrawal, Zillow's shares rose by 2% on Wednesday, indicating market optimism regarding Zillow's future financial health, especially given the previous negative impact of legal expenses on its performance.
- Competitive Landscape Shift: As the largest real estate brokerage in the U.S., Compass aimed to create a private listings network for agents to market properties before public listings, and this lawsuit withdrawal marks a significant shift in the ongoing battle over control of real estate information between the two giants.
- Antitrust Scrutiny: Despite resolving the dispute with Zillow, Compass still faces federal antitrust scrutiny from lawmakers and state attorneys general regarding its $1.6 billion acquisition of Anywhere Real Estate, which could impact its future business operations.
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Analyst Views on ZG
Wall Street analysts forecast ZG stock price to rise
17 Analyst Rating
9 Buy
7 Hold
1 Sell
Moderate Buy
Current: 41.000
Low
66.00
Averages
85.00
High
100.00
Current: 41.000
Low
66.00
Averages
85.00
High
100.00
About ZG
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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- Zillow's Market Challenges: Despite achieving 15% to 16% revenue growth over the past two years, Zillow is constrained by high mortgage rates and economic uncertainty, placing its future growth potential at the mercy of macroeconomic factors in a sluggish real estate market.
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