GET DAILY SIGNALSWhy Is Zillow Group (ZG) Stock Down -8.13% Today?
Key Takeaways
- ZG shares were down about 8.13% to roughly $31.65, versus a prior close of $34.45.
- The primary catalyst was a third-quarter earnings and revenue miss coupled with weaker-than-expected fourth-quarter and full-year guidance.
- Secondary pressure came from a wave of analyst price-target cuts following the report.
- The move reflects a challenging housing backdrop that management described as "one of the toughest real estate markets of this generation."
- Traders are watching whether the stock holds key support levels and how mortgage-rate and housing-volume trends evolve into 2027.
- For deeper context on this ticker, explore Price Targets, Earnings, and Forecast pages.
- Discover actionable trading strategies with Trending AI Robots.
Opening Summary
ZG, the Class A common stock of Zillow Group, Inc. — the operator of a leading portfolio of online real estate and home-related marketplaces, including Zillow, Trulia, and StreetEasy — fell sharply in Thursday's session. Shares were down roughly 8.13%, trading near $31.65 after closing the prior session at $34.45. The decline was driven by a third-quarter earnings and revenue miss and conservative forward guidance, which outweighed the company's year-over-year revenue growth and triggered a round of downward analyst revisions.
Earnings Results and Guidance Miss
The dominant catalyst was Zillow's third-quarter report. Revenue rose about 7% year over year to $724 million, but that figure fell short of Wall Street consensus estimates near $752–$754 million. Adjusted earnings per share came in at $0.55, below the roughly $0.59–$0.60 analysts had modeled, while adjusted EBITDA of $182 million also trailed expectations. On a GAAP basis, the company reported a loss of $0.70 per share.
More concerning to investors was the outlook. Management guided fourth-quarter revenue to a range of $635 million to $665 million — well below the roughly $711 million consensus — and trimmed full-year 2026 revenue guidance to $2.84 billion to $2.87 billion. The company also flagged expectations for industry purchase-mortgage volume to decline 10% to 15% year over year, signaling continued macroeconomic pressure.
Analyst Price-Target Cuts
The soft print prompted several brokerages to reduce their price objectives. Piper Sandler lowered its target from $46 to $39, BofA moved from $37 to $32, Wells Fargo trimmed from $31 to $30, and Cantor Fitzgerald cut its target from $32 to $26. The cumulative effect of these revisions reinforced the bearish tone and weighed on the shares throughout the session.
Sector and Housing-Market Context
The earnings-driven selloff also reflects broader stress in the residential real estate sector. Management noted that the overall residential real estate industry grew just 1% in the quarter, while user traffic metrics softened — average monthly unique users dipped to 215 million and quarterly visits declined 5%. Rentals revenue (up 26%) and Mortgages revenue (up 32%) provided offsets, but were not enough to fully counter the weak for-sale housing environment and lingering legal overhang, including a previously announced $212.5 million class-action settlement.
Market Context and Trading Activity
Trading volume in ZG ran well above typical daily averages as investors repriced the shares following the report. The move was broadly divergent from the wider market, with the decline reflecting company-specific fundamentals rather than an index-led pullback. Technically, the stock slipped back toward the low-to-mid $30s after briefly reclaiming higher levels in the run-up to earnings, testing a key support zone near $31 that traders are monitoring closely.
What Comes Next for ZG
Looking ahead, investors will focus on the durability of Zillow's Rentals and Mortgages growth, the pace of its "Preferred" monetization transition, and any stabilization in mortgage rates and housing transaction volumes. The company's commentary pointing to continued macroeconomic pressure into 2027 suggests the recovery path may be gradual. Risks include further deterioration in the housing market, sustained weakness in search-driven traffic amid shifting online discovery behavior, and additional analyst estimate revisions as the market digests the reduced outlook.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ZG's RSI Oscillator recovers from overbought zone
The 10-day RSI Oscillator for ZG moved out of overbought territory on October 23, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 23 instances where the indicator moved out of the overbought zone. In 20 of the 23 cases the stock moved lower in the days that followed. This puts the odds of a move down at 87%.
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ZG declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
ZG broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 47 of 61 cases where ZG's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 77%.
The Momentum Indicator moved above the 0 level on November 04, 2026. You may want to consider a long position or call options on ZG as a result. In 56 of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 70%.
The Moving Average Convergence Divergence (MACD) for ZG just turned positive on October 08, 2026. Looking at past instances where ZG's MACD turned positive, the stock continued to rise in 33 of 46 cases over the following month. The odds of a continued upward trend are 72%.
ZG moved above its 50-day moving average on November 04, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ZG crossed bullishly above the 50-day moving average on October 27, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 14 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 78%.
Following a +12.41% 3-day Advance, the price is estimated to grow further. Considering data from situations where ZG advanced for three days, in 218 of 301 cases, the price rose further within the following month. The odds of a continued upward trend are 72%.
The Aroon Indicator entered an Uptrend today. In 150 of 204 cases where ZG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 74%.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 37 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 62 (best 1 - 100 worst), indicating steady price growth. ZG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 89 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 94 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.798) is normal, around the industry mean (1.069). P/E Ratio (149.783) is within average values for comparable stocks, (-42.791). Projected Growth (PEG Ratio) (0.920) is also within normal values, averaging (17.274). Dividend Yield (0.000) settles around the average of (0.985) among similar stocks. P/S Ratio (2.780) is also within normal values, averaging (71.888).
The Tickeron PE Growth Rating for this company is 95 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ZG’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
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General Information
a real estate app
Industry InternetSoftwareServices
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