Key Takeaways
- Zillow (Z) touched a 52-week bottom at $41.91, declining 38% in the past year
- Shares currently sit 55% beneath the 52-week peak of $93.88
- JPMorgan countered negative sentiment, dismissing AI threat and litigation worries as excessive
- Company’s board greenlit a $1.25 billion expansion to its share repurchase program
- Shares rebounded approximately 6% Friday following JPMorgan’s analysis before the March 24 AI event
Zillow experienced a turbulent week that concluded with an unexpected Friday rally.
Following a dip to a 52-week bottom of $41.91 earlier in the trading week, Zillow (Z) surged approximately 6% on Friday after receiving favorable analysis from JPMorgan. The investment bank challenged the pessimistic outlook that has weighed on shares.
Shares have declined roughly 38% throughout the past year. In just the last six-month period, the stock has tumbled nearly 49%. At its lowest point, shares were changing hands 55% under the 52-week peak of $93.88.
Despite the significant decline, the company maintains a market capitalization hovering around $10 billion.
JPMorgan contended that current worries surrounding AI competition, pending litigation, regulatory challenges, and modifications to listing practices are exaggerated by market participants. The investment bank believes investors are failing to properly value Zillow’s fundamental business operations and strategic vision.
The firm also highlighted Zillow’s scheduled AI summit on March 24 as a possible turning point. JPMorgan suggested the presentation could demonstrate how Zillow’s proprietary data assets, integrated business model, and comprehensive service ecosystem provide the company with sustainable competitive advantages.
Technical indicators continue to flash a “sell” recommendation, and the stock remains down nearly 40% year-to-date. Typical daily trading volume hovers around 4.3 million shares.
Fourth Quarter Results: Uneven Performance
Zillow delivered Q4 2025 results that presented a mixed bag. Total revenue reached $654 million, surpassing the analyst consensus of $650.23 million. However, earnings per share registered at $0.39, falling slightly short of the $0.40 projection.
Regarding analyst coverage, Keefe, Bruyette & Woods reduced its price objective from $65 down to $60, while maintaining a Market Perform stance. The firm observed that Zillow’s 2026 projections aligned generally with expectations, although margin compression from legal expenses was identified as a risk factor.
William Blair similarly maintained a Market Perform designation following the buyback disclosure.
Share Repurchase Initiative Grows
Zillow’s board of directors authorized a substantial increase to its stock repurchase initiative. The company injected $1.25 billion into the program, elevating its total available buyback authorization to approximately $1.3 billion.
InvestingPro analytics suggested Zillow may be trading below intrinsic value at present levels. The service also observed that share price fluctuations have been notably volatile, aligning with recent trading patterns.
JPMorgan’s assessment and the upcoming AI summit scheduled for March 24 represent the primary near-term catalysts that market participants are monitoring.
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