Zillow Group (ZG) | News Based Sentiment Analysis

• On October 3, 2025, Zillow experienced a significant boost in investor confidence, with its stock jumping 3.9% to settle at $74.79 (up 3.2%) after Gordon Haskett upgraded the stock from 'Hold' to 'Buy' and issued a $90.00 price target. This upgrade signals growing optimism about Zillow's future prospects.
• Further reinforcing this positive sentiment, both DA Davidson and J.P. Morgan reiterated their 'Buy' ratings on Zillow on October 3, 2025, with price targets of $95.00 and $94.00 respectively. These confirmations from multiple firms suggest a consensus view of Zillow as a promising investment.
• Despite the positive analyst ratings, Zillow is currently facing an antitrust lawsuit filed by the U.S. Federal Trade Commission (FTC) and a coalition of states on October 3, 2025, concerning a $100 million payment made to Redfin in February 2025. While Gordon Haskett believes these concerns are overstated, the lawsuit introduces legal risk that investors will need to monitor.
• Analyst consensus currently leans 'Moderate Buy' for Zillow Group Inc Class A (ZG), based on ratings from 24 analysts as of October 3-4, 2025, with an average 12-month price target of $90.14, representing a 26.64% increase from its current price of $71.18. This indicates a generally favorable outlook, despite some dissenting opinions.
• Looking at financial projections, analysts anticipate Zillow's annual revenue to reach $2,546 million in 2025, a 6.62% increase, with a projected non-GAAP EPS of $2.07. Next quarter's earnings are estimated at $0.43 per share, following a previous quarter's EPS of $0.40, though Zillow has historically beaten EPS estimates only 0.00% of the time.
• Institutional activity reveals a slight decrease in the number of funds/institutions holding positions in Zillow – a 1.79% decrease to 494 funds as of October 4, 2025 – but an 8.33% increase in average portfolio weight and a 2.36% rise in total shares owned to 44,927K shares. This suggests institutions are consolidating their holdings despite a slight reduction in the number of owners.
• Despite the analyst upgrades, Zacks Rank currently rates Zillow a #4 (Sell) as of October 3, 2025, due to declining earnings estimate revisions. This conflicting signal highlights the complexity of assessing Zillow's investment potential.

The Investment Story: October 2025 presented a mixed bag for Zillow, with strong analyst upgrades and positive financial projections offset by a significant antitrust lawsuit and a 'Sell' rating from Zacks. The market appears optimistic, but legal challenges and earnings revision trends warrant caution.

What It Means for Investors: The analyst upgrades suggest potential for short-term gains, but the FTC lawsuit introduces substantial risk. Investors should closely monitor the legal proceedings and assess the potential impact on Zillow's business model. The mixed signals require a balanced approach, considering both the upside potential and downside risks.

Looking Ahead: Investors should focus on the outcome of the FTC lawsuit and monitor Zillow's Q2 2024 earnings report (building on the May 8, 2024, Q1 results) to see if the company can stabilize revenue and continue to grow its IMT segment. Tracking institutional activity and earnings estimate revisions will also be crucial.

The Bottom Line: Zillow remains a complex investment. While analyst sentiment is largely positive, the antitrust lawsuit and conflicting ratings create uncertainty. Investors should proceed with caution, carefully weighing the potential rewards against the inherent risks.