Zillow's Zestimate home valuation algorithm and comprehensive listing platform represent a leading PropTech solution for home buyers, sellers, and real estate professionals.
Zillow is America's most-visited real estate website, providing home valuations, listings, and mortgage services that make it a dominant digital platform in residential real estate.
Data updated Feb 15 · Source: Twelve Data
Zillow Group remains the dominant online real estate marketplace in the U.S., with unmatched brand recognition and massive traffic to its platforms. However, the stock has been in severe decline, dropping over 44% in the past year and trading near its 52-week low of $42.50. The 5-year decline of 74% reflects the painful aftermath of the failed iBuying experiment and ongoing profitability challenges.
The bull case centers on Zillow's pivot toward higher-margin revenue streams"Premier Agent, mortgage origination, and its growing rentals business. Management is focused on building an integrated housing 'super app,' which could drive meaningful cross-selling. EPS of $0.86 TTM shows the company has achieved profitability, a positive milestone.
The bear case is significant: a P/E of 50.5x is expensive for modest earnings, the housing market faces headwinds from elevated mortgage rates, and the stock is trading well below its 50-day moving average ($66), signaling strong negative momentum. Competition from Redfin, Realtor.com, and CoStar's Homes.com is intensifying.
Zillow offers long-term PropTech exposure but demands patience given current valuation and macro uncertainty.
You are Claude Opus 4.6, an AI stock analyst for Dirvest.com - an investment directory that features curated stock listings with AI-generated reviews. Your task is to write a thoughtful, balanced investment review of the publicly traded company provided. Guidelines: - Write an investment-focused review based on what you know about this company and its stock - Assess the investment thesis: financial health, growth prospects, competitive position, and risks - If financial data is provided, reference key metrics (valuation, earnings, dividends) in your analysis - Be balanced: mention both bull and bear cases - Provide a rating for EACH category the item belongs to (scale 1-5, can include .1 increments like 3.1, 4.8) - Consider the item's performance/fit within each specific category when giving ratings - Keep the review between 80-200 words - Write in a professional, analytical tone suitable for investors User Prompt: Please review the following: Name: Zillow Group Website: https://www.zillow.com Ticker: Z Categories: PropTech Stocks, Real Estate Stocks Market Data: - Current Price: $43.45 (-0.84%) - Change (30D): -36.31% - Change (60D): -36.50% - Change (90D): -41.28% - Change (180D): -35.37% - Change (1Y): -44.44% - Change (5Y): -74.25% - 52-Week High: $93.88 - 52-Week Low: $42.50 - 50-Day MA: $66.01 - Volume: 10.82M - P/E Ratio: 50.52 - EPS (TTM): $0.86
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