Zillow Group, Inc. (Z) Down 4.9% — Is It Time to Call It Quits?
Zillow Group, Inc. (Z) finished the latest session under pressure, sliding 4.93% to close at $62.90, retreating from the prior close of $66.16. That move left the stock losing ground by $3.26 in a single trading day, reinforcing a short-term downtrend that has been weighing on recent performance. Trading activity was notably subdued, with only 908,483 shares changing hands, well below the 90-day average volume of 2,825,251. The lighter trading suggests the latest decline unfolded without heavy participation, yet the price action still skewed decisively to the downside.
From a longer-term perspective, the stock continues to face headwinds after retreating sharply from its 52-week high of $93.88 set on Sept. 17, 2025. At the current $62.90 level, Zillow Group is now trading more than $30 below that peak, marking a steep slide from recent highs and leaving the shares much closer to the 52-week low of $57.51 than to the top of their annual range. Within the online real estate and property technology space, other names such as CoStar Group, Inc. (CSGP), Zillow Group, Inc. (ZG), and Opendoor Technologies Inc. (OPEN) have also seen bouts of price weakness, underscoring a group that has generally been losing ground. Even with lighter-than-usual trading, Zillow’s latest drop adds to a pattern of retreating price action that keeps the stock under ongoing pressure.
Why Zillow Group, Inc. Price is Moving Lower
Recent weakness in Zillow Group, Inc. (Z) appears driven more by sentiment and positioning than by fresh, company-specific catalysts. After spiking to a recent close near $69.57 on Jan. 26 on heavy volume above 2.4 million shares, the stock has since faded back toward the mid-$60s, with a close at $65.98 on Jan. 28 and recent intraday trading near $65.21. This kind of reversal from a short-term high on elevated turnover often reflects profit-taking and growing caution among traders who see limited near-term upside after a quick run. The pullback is occurring against a backdrop of reduced activity, with current trading volume well below the 90-day average, suggesting less aggressive buying support on the way down.
Fundamentally, the stock is also facing pressure from lingering concerns about profitability and sector headwinds. Zillow is generating solid top-line momentum — revenue rose to $662 million last quarter from $641 million previously, a 3.3% sequential increase and double‑digit growth year over year — but the business is still operating with a negative profit margin around -1.3%. That disconnect between robust revenue growth and lack of sustained earnings can weigh on valuation, particularly in a higher-rate environment where investors are less forgiving of companies that are not clearly profitable. Broader weakness and competitive pressures across online real estate platforms and property technology names are reinforcing a more defensive stance toward the group, adding to the downside pressure on Zillow’s shares.
What is the Zillow Group, Inc. Rating - Should I Sell?
Weiss Ratings assigns Z a D rating. The stock was upgraded on 8/8/2024. Current recommendation is Sell. Even after reassessment, Zillow Group, Inc. remains in territory where the overall risk/reward profile is unfavorable compared with many other stocks. A D rating signals that, on a risk-adjusted basis, shareholders have not been well-compensated for the risks they are taking.
The most glaring issue is profitability and efficiency. Despite revenue growth of 16.35%, Zillow is still posting a negative profit margin of -1.28% and an extremely stretched forward P/E ratio of -466.90. These figures align with the Very Weak Efficiency Index, indicating that management is generating poor returns on the capital deployed. In practice, this means that topline growth has not translated into sustainable earnings power, leaving investors exposed if growth slows or costs rise.
On the surface, there are some positives: the Good Growth Index and the Excellent Solvency Index show that the company is expanding its operations and maintains a solid balance sheet. However, these strengths have not shielded investors from underperformance. The Weak Total Return Index and Weak Volatility Index indicate that shareholders have experienced disappointing risk-adjusted returns and choppy trading, a combination that often punishes late entrants and buy-and-hold investors.
Within the Real Estate sector, Zillow’s D rating is in line with several struggling peers, such as CoStar Group, Inc. (CSGP, D) and Zillow Group, Inc. (ZG, D-), and only marginally better than Opendoor Technologies Inc. (OPEN, E+). This peer group context reinforces the message: in a challenged segment, Zillow does not currently stand out as a safer or more rewarding alternative, warranting continued caution.
About Zillow Group, Inc.
Zillow Group, Inc. is a digital real estate company headquartered in Seattle, Washington, focused on connecting consumers and real estate professionals through a portfolio of online and mobile brands. Operating in the U.S. real estate management and development industry, the company concentrates on lead generation and advertising products for agents, landlords, and homebuilders rather than on physical real estate assets. Its core platforms center on Zillow’s premier agent marketplace and rental marketplace, which are designed to sell advertising and placement to real estate professionals seeking buyer, seller, and renter leads. This model makes Zillow heavily dependent on the continued willingness of agents and property managers to pay for online exposure in a competitive and cyclical housing environment.
Beyond its flagship Zillow platform, the company operates a fragmented collection of brands, including Trulia, StreetEasy, HotPads, and Out East, each catering to specific geographic or segment niches. Zillow also extends into adjacent services such as Zillow Home Loans for mortgage originations, plus title and escrow services, adding operational complexity and regulatory exposure. Its technology offerings, including dotloop, ShowingTime+, Spruce, and Follow Up Boss, aim to keep real estate professionals within its ecosystem by digitizing transaction management, showings, and customer relationship management. However, this broad sprawl of products and brands requires continuous investment to stay relevant against specialized competitors, other property portals, and direct-to-consumer models emerging across the real estate technology landscape.
Investor Outlook
With Zillow Group, Inc. (Z) carrying a D (Sell) Weiss Rating, investors may want to exercise caution and closely monitor whether any improvement emerges in its overall risk/reward profile. Watch for shifts in real estate market trends, signs of more consistent operational execution and any meaningful change in the company’s longer-term performance relative to peers. See full rankings of all D-rated Real Estate stocks inside the Weiss Stock Screener.
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