Zillow Shares Drop 7% as Analysts Keep $50 Target
Zillow shares dropped 7% this week after technology-focused funds pared holdings. Analysts maintain a $50 median price target and overweight ratings, citing 25% year-over-year Premier Agent revenue growth and narrowing operating losses.
1. Investor Rotation Hits Zillow Shares
Technology-focused funds reduced Zillow positions this week, triggering a 7% decline in the stock. The sell-off reflects a broader shift away from high-growth tech names as investors redeploy capital into sectors with stronger near-term earnings visibility.
2. Analyst Ratings Remain Bullish
Despite the pullback, the Street holds an overweight consensus on Zillow with a $50 median price target. Major brokerages point to resilient core listings volumes and improving cost structure as justification for unchanged bullish views.
3. Underlying Business Momentum
Premier Agent revenue climbed 25% year over year in the latest quarter, driven by higher adoption among real estate professionals. Operating losses narrowed by 15 percentage points, boosting confidence in a path to sustained profitability.