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Zillow Group Inc. is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is currently in a bearish technical trend, with weak financial performance in the latest quarter and no significant trading signals. While there are some positive developments like AI integration and brokerage signings, the negative catalysts, including declining net income and bearish moving averages, outweigh the positives. Holding the stock or waiting for a more favorable entry point is recommended.
The stock is in a bearish trend with SMA_200 > SMA_20 > SMA_5. RSI is neutral at 27.399, and MACD is above 0 but positively contracting. The current price is below the key pivot level of 43.585, with support at 39.778 and resistance at 45.938.
AI integration through Zillow AI Mode and Zillow Preview, which enhances property visibility and user experience.
Recent brokerage signings and reaffirmed Q1 2026 revenue expectations indicate market stability and growth potential.
Weak financial performance in Q4 2025, with net income dropping by -105.77% YoY and EPS declining by -104.55%.
Bearish technical indicators, including moving averages and price below key pivot levels.
Analyst concerns about litigation risks and market structure uncertainties.
In Q4 2025, revenue increased by 18.05% YoY to $654 million. However, net income dropped significantly by -105.77% YoY to $3 million, and EPS fell by -104.55% to 0.01. Gross margin also declined by 4.00% YoY to 72.78.
Analysts are mixed on Zillow. Keefe Bruyette maintains a Market Perform rating with a $60 price target, while JPMorgan sees the recent selloff as an overreaction and a buying opportunity. However, Mizuho downgraded the stock to Neutral due to litigation and market structure uncertainties. Price targets range from $60 to $110, with mixed sentiment on long-term growth.
