Bad news for Zillow this Spring 2024, Spruce Point Capital announced a strong sell investor opinion on Zillow Group, Inc. The research opinion is based on the investment management firm’s full review of Zillow, taking its history and current challenges into account. 

Spruce Point founder and Chief Investment Officer Ben Axler did not mince words when he discussed the firm’s report in a CNBC news segment

The report and his overview focused on five key reasons for the firm’s belief in a long-term downside risk to Zillow stock values of 40% to 60%, with share prices falling to $23–$35.

#1— “ZILLOW IS A MATURE BUSINESS WITH A HISTORY OF FAILURES”

#2—ZILLOW’S BUSINESS MODEL IS IN THE CROSSHAIRS OF COMMISSION LITIGATION

#3—HOMES.COM IS A RISING (AND OFTEN UNDERESTIMATED) THREAT TO ZILLOW’S DOMINANCE

#4—ZILLOW’S AGGRESSIVE ACCOUNTING PRACTICES ENABLE PREMATURE REVENUE CLAIMS

#5—SPRUCE POINT HAS CONCERNS WITH ZILLOW’S GOVERNANCE AND SHAREHOLDER ALIGNMENT