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Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

Zillow (Z-Q) presents a mixed picture for investors, primarily influenced by the cyclical nature of the housing market, which is highly susceptible to changes in sentiment. While the company has a robust business model and maintains a connection to its founder, it faces challenges due to its substantial size. Despite rising revenues, Zillow has struggled to generate profits, leading to skepticism among investors. Additionally, the current inventory levels for resale homes are at historically low points, contributing to a tight market that could have implications for the company's growth. Ultimately, while there is potential for capital-light housing exposure, the underlying financial metrics raise red flags for cautious investors.

Consensus
Mixed
Valuation
Overvalued
Similar
OpenDoor, OPD
WEAK BUY

Stock's a lot more cyclical than the company, as it's subject to a lot of sentiment swings in US housing. Good business, founder is still on the board. Too big for him, but a way to get capital-light housing exposure.

DON'T BUY

Inventory levels for resale homes are at all-time lows, so that market is very tight. Has never made money, even though revenues are rising. Not for him.

DON'T BUY
They screwed up and make up for it, partly, but it is too closely tied to the housing market.
SELL
He's naming the CEO to his Hall of Shame. The company fed Wall Street a lot of claptrap about how they understood the real estate market better than anyone. In 2019, he warned viewers about Zillow when he called it risky with some brutal speedbumps along the way. Now, they're trying to sell 7,000 homes to institutional investors for a reported $2.8 billion. So much for fix and flip. Zillow is now taking $569 million from write-offs as it winds down the business. Barton treated the street like suckers.
COMMENT
They report Tuesday. The economics turned against them, so they've put the house-flipping business on pause. What they say Tuesday will be important, but more so will be Jay Powell's FOMC minutes on Wednesday.
COMMENT
Weakness in the U.S. housing market A report says that it's paused flipping homes, which makes him wonder if there's weakness in the housing market, which has been booming. Costs of labour and materials has been popping, which is also delaying the completion of new homes. Appliances have leap from 2 week to 8 weeks to find and install. Precarious. Housing can't keep costs down. That said, if interest rates stay low, the boom will continue in states with heavy housing demand. If. It's possible that housing demand and prices have gone up too far, too fast, but he's worried that the boom won't last.
DON'T BUY
He wouldn't buy this as interest rates rise and will pressure home-buying.
BUY ON WEAKNESS
It's down 25% for the year, which he thinks is a decent buy with these low mortgage rates.
PAST TOP PICK
(A Top Pick Aug 28/19, Up 149%) Digital real estate database. Strong momentum. Price target of $88, and it's getting close.
TOP PICK
An American online real estate company. They have an app for agents, clients, and one for home vendors and renovators. A great opportunity to buy down here. His price target is $65. Yield 0% (Analysts’ price target is $50.67)
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Zillow(Z-Q) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 2

Stockchase rating for Zillow is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Zillow(Z-Q) Frequently Asked Questions

What is Zillow stock symbol?

Zillow is a American stock, trading under the symbol Z-Q on the NASDAQ (Z). It is usually referred to as NASDAQ:Z or Z-Q

Is Zillow a buy or a sell?

In the last year, 2 stock analysts published opinions about Z-Q. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Zillow.

Is Zillow a good investment or a top pick?

Zillow was recommended as a Top Pick by on . Read the latest stock experts ratings for Zillow.

Why is Zillow stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Zillow worth watching?

2 stock analysts on Stockchase covered Zillow In the last year. It is a trending stock that is worth watching.

What is Zillow stock price?

On 2025-04-02, Zillow (Z-Q) stock closed at a price of $71.29.