Zillow Posts Three-Day Rally After 50% Slide, Piper Sandler Sees 50% Upside
Zillow shares posted three straight days of gains after a nearly 50% slide, trading near $45—levels last seen in 2014. Q4 revenue rose 18% on year with expanded margins and adjusted EBITDA growth, while Piper Sandler reaffirmed an Overweight rating with a $70 price target, implying over 50% upside.
1. Three-Day Rally Recovery
After tumbling almost 50% over five months, Zillow shares gained for three consecutive trading days, rising back to around $45 per share, a level last reached in 2014. This technical bounce follows extreme bearish sentiment and oversold conditions that have pressured the stock.
2. Q4 Fundamental Performance
In the latest quarter, Zillow reported 18% year-on-year revenue growth alongside expanded margins and a rise in adjusted EBITDA, delivering its first full-year profitability despite missing earnings per share estimates by a few cents.
3. Rental and Mortgage Growth
The rentals segment led with strong multifamily growth, while mortgage revenue also increased, underlining Zillow’s strategy to diversify across buying, selling, renting and financing within its integrated real estate ecosystem.
4. Technicals and Analyst Outlook
Zillow’s relative strength index fell to its lowest reading in over a decade, signaling extreme oversold conditions that could prompt a relief rally. Piper Sandler reiterated an Overweight rating with a $70 price target, suggesting more than 50% upside from current levels.