Where is Zillow stock prices?
Boston Condos for Sale and Apartments for Rent
Where is Zillow stock prices?
Shares of Zillow Group (Z -5.18%) dropped 11.5% in March, according to data provided by S&P Global Market Intelligence. News broke that realtor commissions would be fundamentally changed moving forward, sparking fears of lower demand for Zillow’s services.
NASDAQ: Z
Last month, the National Association of Realtors (NAR) announced that a legal settlement is expected to result in a 25% to 50% reduction in realtor fees on residential real estate transactions. Nearly 90% of home sales in the U.S. are handled by NAR members, who have generally charged a 6% standard commission on the sale price, so the total impact could be enormous.
IMAGE SOURCE: GETTY IMAGES.
Zillow attributes most of its revenue to advertising services provided to realtors, and the residential market accounted for 75% of its total 2023 revenue. Slashed realtor commissions shouldn’t have a direct impact on Zillow’s financials, so the steep drop in share prices might seem strange on the back of that news.
Investors are worried that demand for Zillow’s services will be hurt if the economics of the realtor business are changed. Real estate professionals will have less cash, so their advertising budgets are likely to be reduced. That’s especially true for smaller operations that were already getting by on narrow margins and irregular cash inflows. This might also squeeze some part-time or less motivated professionals out of the market, and reduced competition might result in diminished need for marketing and lead generation.
Rival Redfin (RDFN -6.46%) also slumped on the NAR news, even though the SPDR S&P Homebuilders ETF (NYSEMKT: XHB) rose, illustrating the macroforces driving the stock prices last month.
Zillow’s forward price-to-earnings (P/E) ratio is below 34 now, and it’s even cheaper relative to cash flow. The company has a rough couple of quarters ahead, but long-term bulls have a chance to buy at a reasonable valuation following headline-driven selling.
_____________
Where is Zillow stock prices?
Stocks Drop
Shares of Zillow fell 6.9% Tuesday, the biggest decline since June 2022. While the company doesn’t rely on commission income directly, its core business is selling marketing services to buyers’ agents. The stock has dropped more than 80% from its peak in February 2021, when it was riding the pandemic housing boom.
Brokerage shares also sank Tuesday, with Compass Inc. falling 6.2% and Redfin Corp. dropping 5.7%.
Updated: Boston condos for sale website 2023
_________________________________________________________________________________________
Where is Zillow stock prices?
Zillow stock jumps 12% this week as mortgage rates his 2008 highs.
The Zillow stock chart below. shows its value over the past year has been nearly a vertical line downward. Given that, it’s hard to trust that this real estate internet titan has a path forward.
In August 2021, Zillow’s stock price was at $97.75, today its at $39.67.
