Analysts Revise Zillow Outlook: What's Driving the New Price Target?

In a move closely watched by real estate and tech investors, several financial firms have updated their price target for Zillow Group (NASDAQ: ZG). The adjustment reflects a broader reassessment of the company's trajectory as it navigates the post-pandemic housing landscape and intensifying competition.

The revision stems from a complex mix of factors. Analysts are weighing Zillow's core marketplace strength—its premier brand and traffic—against the challenges of its newer, capital-intensive ventures like home-flipping, which it has since exited. The focus has sharpened on its advertising revenue resilience and the growth potential of its integrated services, such as mortgages and closing tools, in a higher-interest-rate environment.

"This isn't just a number change; it's a narrative shift," said market strategist David Chen of Horizon Advisors. "The market is moving past the 'iBuying' saga and evaluating Zillow on its ability to monetize its unmatched audience and data. The new target suggests analysts see a path to stability, if not explosive growth, from its advertising and software offerings."

The impact extends beyond Zillow's stock price. As a bellwether for the proptech sector, its performance and perceived valuation set a tone for how investors view the digital transformation of real estate. A more conservative outlook could signal tighter scrutiny on similar business models.

What Investors Are Saying

We gathered reactions from the investment community:

• Michael R., Portfolio Manager: "The adjustment feels measured. Zillow's network effect is durable, but monetization in a cooler market is the real test. I'm watching their Premier Agent partner metrics closely."
• Sarah Lin, Retail Investor: "As someone who uses Zillow every day, it's hard to imagine the platform being displaced. This seems like a buying opportunity if you believe in the long-term digitization of housing transactions."
• James "Bull" Carter, Independent Trader: "This is classic Wall Street short-sightedness! They punished Zillow for the iBuying misstep, but the core asset—the traffic—is stronger than ever. The new targets still undervalue the platform's ultimate transaction-fee potential. They're missing the forest for the trees."
• Priya Desai, FinTech Analyst: "The revised target incorporates macro headwinds appropriately. The key question is whether their adjacent services can achieve sufficient scale to diversify revenue meaningfully away from cyclical advertising."

This analysis is based on publicly available data and analyst commentary. It is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a financial advisor.