What Happened?
Shares of online real estate marketplace Zillow (NASDAQ: ZG) jumped 3.9% in the afternoon session after investment firm Gordon Haskett upgraded the stock to 'Buy' from 'Hold' and set a price target of $90. The upgrade indicated a positive shift in the firm's view of the company's prospects. Further bolstering investor confidence, analyst firm DA Davidson maintained its own "Buy" rating on Zillow, holding its price target at $95. Together, these ratings suggested a favorable outlook on the online real estate company's potential for growth and market performance.
After the initial pop the shares cooled down to $74.79, up 3.2% from previous close.
Is now the time to buy Zillow? Access our full analysis report here.
What Is The Market Telling Us
Zillow’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock dropped 4% on the news that the company was sued by the U.S. Federal Trade Commission (FTC) and a coalition of states over an alleged illegal scheme to eliminate competition in the online rental listings market.
The lawsuits allege that in February 2025, Zillow paid rival Redfin $100 million to shut down its apartment rental advertising business and transfer clients to Zillow. According to the FTC and attorneys general from five states, including New York and Washington, this agreement violates federal antitrust laws. Regulators are concerned the deal will reduce innovation, increase advertising costs for landlords, and ultimately harm renters by limiting their choices. The legal actions seek to unwind the agreement and come amidst a series of other lawsuits Zillow is currently facing, putting the company under an intense legal spotlight.
Zillow is up 6.7% since the beginning of the year, but at $74.79 per share, it is still trading 13.8% below its 52-week high of $86.76 from September 2025. Investors who bought $1,000 worth of Zillow’s shares 5 years ago would now be looking at an investment worth $678.30.
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