Why Are Zillow Shares Dropping In Wednesday's Premarket?

Zillow Group, Inc. Class C -2.06% Post
Zillow Group, Inc. Class A -2.13% Post

Zillow Group, Inc. Class C

Z

40.79

42.38

-2.06%

+3.89% Post

Zillow Group, Inc. Class A

ZG

40.92

42.08

-2.13%

+2.83% Post

Zillow Group Inc (NASDAQ:Z) shares are declining in Wednesday’s premarket session on the company’s mixed fourth-quarter results.

This decline comes as Nasdaq futures are up 0.08% while S&P 500 futures have gained 0.12%, indicating that the stock is moving against broader market trends.

The Earnings Details

Zillow reported financial results for the fourth quarter after the market closed on Tuesday.

The residential real estate platform delivered quarterly revenue of $654 million, exceeding analyst estimates of $650.29 million. However, adjusted earnings per share of 39 cents fell short of the 40-cent consensus estimate.

Total revenue climbed 18% year-over-year in the quarter. The company noted that its quarterly revenue growth outperformed the broader residential real estate industry on a year-over-year basis.

Forward Guidance Beats Expectations

The company provided first-quarter revenue guidance of $700 million to $710 million, surpassing analyst estimates of $690.33 million.

Technical Analysis

Zillow is currently trading 17.2% below its 20-day simple moving average (SMA) and 26.1% below its 100-day SMA, indicating a bearish trend in the short to medium term. Over the past 12 months, shares have decreased by 36.62%, and they are currently positioned closer to their 52-week lows than highs.

The RSI is at 27.60, which is considered oversold, signaling potential for a rebound if buying interest returns. Meanwhile, the MACD is below its signal line, indicating bearish pressure on the stock.

The combination of oversold RSI and bearish MACD suggests mixed momentum, reflecting uncertainty in the stock’s near-term direction.

  • Key Resistance: $53.50
  • Key Support: $50.00

Analyst Outlook

The stock carries a Buy Rating with an average price target of $77.88. Recent analyst moves include:

  • Keefe, Bruyette & Woods: Market Perform (Lowers Target to $65.00) (Feb. 9)
  • Keefe, Bruyette & Woods: Market Perform (Lowers Target to $80.00) (Nov. 3, 2025)
  • JP Morgan: Overweight (Raises Target to $95.00) (Oct. 31, 2025)

Price Action: Zillow Gr shares were down 3.49% at $52.80 during premarket trading on Wednesday, according to Benzinga Pro data.

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