Zillow and Redfin Refute Claims After Lawsuits from AGs and FTC, According to CNBC
Lawsuit Filed: Attorneys general from five states have filed a lawsuit against Zillow and Redfin, alleging that the companies conspired to limit competition in the online housing rental market.
Company Responses: Both Zillow and Redfin have denied the allegations, with Redfin expressing confidence in a legal vindication and Zillow asserting that its partnership with Redfin is beneficial for competition and consumers.
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- Credit Agreement: ZILLOW GROUP INC has entered into a credit agreement providing a $500 million revolving facility.
- Purpose of Facility: The facility is intended for general corporate purposes, including potential acquisitions and other financial needs.

Zillow Group Inc. Enters Credit Agreement: Zillow Group has entered into a credit agreement with Goldman Sachs, indicating a strategic financial move to support its operations.
SEC Filing: The details of this credit agreement have been filed with the Securities and Exchange Commission (SEC), ensuring compliance with regulatory requirements.
- Stock Volatility: Opendoor's stock surged 264% in 2025, but it hit a record low of $0.51 in June before skyrocketing over 2000% to $10.87, illustrating extreme market sentiment fluctuations driven by social media.
- Poor Sales Performance: In the first three quarters of 2025, Opendoor sold 9,813 homes generating $3.6 billion in revenue, but only acquired 6,535 homes, indicating a deliberate inventory reduction amid tough market conditions, with revenue expected to shrink further in early 2026.
- Ongoing Losses: Opendoor reported a net loss of $204 million in the first three quarters of 2025, and even after excluding one-off and non-cash expenses, the adjusted loss was still $133 million, highlighting significant challenges to profitability.
- New CEO's Transformation Plan: New CEO Kaz Nejatian aims to leverage artificial intelligence to accelerate home sales, intending to boost sales volume and market share; however, skepticism remains regarding the feasibility of this strategy, especially given the failures of predecessors like Zillow.
- Price Target Increase: Wells Fargo raised ConocoPhillips' price target from $100 to $132, with analyst Sam Margolin upgrading the stock from Equal-Weight to Overweight, which is expected to drive stock price appreciation and enhance market confidence.
- Significant Boost: Susquehanna increased Applied Materials' price target from $180 to $400, with analyst Mehdi Hosseini upgrading the rating from Neutral to Positive, reflecting optimism about strong demand in the semiconductor industry.
- Rating Adjustment: UBS raised Vista Energy's price target from $50 to $65, with analyst Tasso Vasconcellos upgrading the rating from Neutral to Buy, indicating confidence in the company's future growth potential.
- Price Target Downgrade: Citigroup cut Seadrill's price target from $35 to $32, with analyst Scott Gruber downgrading the rating from Neutral to Sell, signaling concerns about the company's outlook that may lead to decreased investor confidence.
- Merger Completion: Compass has successfully completed its all-stock merger with Anywhere Real Estate, valued at $1.6 billion, significantly enhancing the company's market scale and integration capabilities, which is expected to improve economic efficiency in the competitive real estate market.
- Capital Structure Optimization: The transaction is supported by $850 million of convertible senior notes due in 2031, providing Compass with flexibility as it integrates operations and rationalizes overlapping systems, thereby boosting investor confidence.
- Surge in Trading Volume: Following the merger's completion, Compass saw trading volume reach 47.1 million shares, approximately 227% above the three-month average, indicating a positive market reaction to the newly structured platform, despite a decline in peer Zillow's stock price.
- Focus on Long-Term Returns: Investors are shifting their focus to how well Compass can retain agents, control costs, and integrate technology, as these factors will likely have a greater impact on the company's long-term return potential than the size of the merged platform.

- Merger Completion: Compass has successfully completed its all-stock merger with Anywhere Real Estate, valued at $1.6 billion, and despite a 36% decline in stock price since its 2021 IPO, this merger is seen as a pivotal step in restructuring the company's platform.
- Financial Flexibility: The transaction is supported by $850 million of convertible senior notes due in 2031, providing Compass with necessary financial flexibility as it integrates operations and rationalizes overlapping systems, which could potentially enhance its long-term economic performance.
- Market Reaction: Following the merger completion, Compass's trading volume surged to 47.1 million shares, about 227% above its three-month average, indicating a revaluation of the newly structured platform, while peer Zillow slipped 2.01%, reflecting differing investor sentiments across the industry.
- Long-Term Outlook: Investors are focused on how well Compass retains agents, controls costs, and integrates technology, as these factors will likely have a more significant impact on the company's long-term returns than the scale of the combined platform, especially given the historically high spending required to attract and retain agents in the real estate sector.








