Zillow (Z) Stock Forecast & Price Target

Zillow Group Inc. has demonstrated substantial growth in its mortgage segment, with revenue increasing by 86% year-over-year, significantly outpacing guidance and reflecting an increasing adoption rate among buyers. The company's EBITDA margin improved by 394 basis points year-over-year, highlighting enhanced operational efficiency and profitability as it reached 19.7% of revenue. Additionally, Zillow anticipates a rebound in demand and profits through FY25, driven by organic growth, expanded rental revenues, and an increase in listing showcases, further supporting a positive outlook for the company’s cash flow and earnings potential.

Zillow Group Inc. reported net revenue of $1.6 billion, reflecting a year-over-year increase of 26.6%, yet this figure fell approximately 1% short of analysts' expectations. The company's guidance for the first quarter indicates a flat housing market, which is expected to lead to a deceleration in total revenue growth by around 700 basis points quarter-over-quarter. Additionally, a decline in monthly active users and various challenges impacting gross bookings, such as weather disruptions and weaker pricing dynamics, further contribute to the negative outlook for Zillow's stock.