Zillow (Z) Stock Forecast & Price Target

Zillow Group Inc. demonstrated impressive financial growth, with mortgage revenue soaring by 86% year-over-year, significantly surpassing guidance expectations and reflecting increasing adoption rates among buyers using Zillow's loan services. The company's EBITDA margin improved by 394 basis points year-over-year, reaching 19.7% of revenue, indicating enhanced operational efficiency and profitability. Additionally, strong anticipated growth in demand and profits through FY25, fueled by both organic and inorganic developments across its core and rental segments, reinforces a positive outlook for the company's cash flow and overall market position.

Zillow Group Inc's recent financial performance indicates a concerning trend, as the net revenue of $1.6 billion, while reflecting a year-over-year growth of 26.6%, fell short of Street estimates by approximately 1%. The company's outlook for the housing market suggests stagnant conditions in the first quarter, resulting in a significant deceleration in total revenue growth by about 700 basis points quarter-over-quarter. Additionally, a decline in monthly active users from 1.4 million to 1.3 million and various negative factors impacting gross bookings growth, such as the previous year’s leap day, adverse weather disruptions, and poor pricing dynamics, further solidify the analyst's negative outlook.