Zillow stock jumps on third-quarter revenue growth, narrows losses

On By Littum

  • Zillow Group shares rose Thursday after the real estate company posted strong sales gains in the third quarter and narrowed its losses.

  • Zillow reported third-quarter revenue of $581 million, a 17% year-over-year increase.

  • The company’s shares have risen 40% since it appointed Jeremy Wacksman as its new CEO in August.

  • JPMorgan analysts raised their price target on Zillow to $78 from $61, citing a “solid outlook” amid a “challenging housing market.”

Zillow Group (Z) shares rose Thursday after the real estate firm posted strong third-quarter sales and narrowed its losses.

Zillow reported third-quarter revenue of $581 million, up 17% from a year earlier and above the midpoint of the range the company had previously offered. Its net loss for the three months to September 30 fell to $20 million from a loss of $28 million in the same period last year.

Sales in the period outperformed growth in total transaction value of 2% in the broader residential property industry, the website said, citing National Association of Realtors (NAR). The company also offered a fourth-quarter revenue outlook of $525 million to $540 million, with analysts tracked by Visible Alpha looking for about $537 million.

Zillow shares rose 22% Thursday morning.

Zillow projects fourth-quarter revenue in the range of $525 million to $540 million and said it is sticking to its forecast for full-year double-digit revenue growth.

The company’s stock is up 40% through Wednesday’s close since it named a new chief executive officer (CEO)previous Chief Operating Officer (COO) Jeremy Wacksman, along with better than expected results for the second quarterat the beginning of August. However, the shares are only a few percentage points in the green for the year.

The company has been a recipient of lower United States interest on mortgage loansaccording to analysts, US 30-year mortgage rates, currently at a 6.91% on averageare down from their 2024 high of 7.52% on April 25.

JPMorgan analysts raised their price target on Zillow to $78 from $61, citing a “solid outlook” amid a “challenging housing market.”


UPDATE – Nov. 7, 2024: This article has been updated to include fresh stock quotes.