Introduction
Zillow is a well-known name in the digital real estate business, and the company has seen its fair share of market highs and lows. In the last few months, there has been a lot of talk about how Zillow’s stock is doing. This has led to arguments between novice and experienced investors on whether now is a good time to buy, hold, or sell. This long, detailed article explains the reasons for Zillow’s recent stock performance, its business shift, its financial health, and what it could mean for you.
Step 1: Knowing What Zillow Is Up To Right Now
As of the end of June 2025, Zillow’s stock is trading at about $68. This is because of changes in the market and changes in the company’s own strategy. A few years ago, Zillow made news when it got out of the risky home-flipping business and instead focused on more stable sources of income, such rental listings and mortgages.
The company had to change its strategy since its former “iBuying” model, which involved purchasing and selling properties on a large scale, was too volatile and left it open to unanticipated market downturns. Zillow has gotten smaller and is now focusing on what it does best: linking millions of customers to agents, rental listings, and mortgage products through its digital platform.
Step 2: Looking at Zillow’s most recent financial results
When looking at Zillow’s stock performance, the numbers tell the whole story. According to its report for the first quarter of 2025, Zillow had:
- $598 million in sales, which is a 13% increase from last year
- Net income of $8 million, which means the company is back in the black after losing money for a while.
- The adjusted EBITDA margin is roughly 26%, which shows that things are getting better.
These data show that things are moving in the right direction, but they should be looked at in light of Zillow’s valuation. The firm has a forward price-to-earnings ratio of almost 41 times and a price-to-sales ratio of more than 7 times, which is much higher than some of its competitors. This price implies that investors are hopeful, but it also shows that the company could be in trouble if it doesn’t do well.
Step 3: How Zillow’s Strategic Change Affects Things
One of the most important questions affecting Zillow’s stock price right now is whether the company’s change will lead to long-term growth.
Zillow has focused on the following after ending its iBuying business:
- Growth in the rental market: In the first quarter of 2025, rental income rose by almost 33% from the previous year.
- Services for several families: Increased by almost 47%, showing that Zillow can reach bigger rental markets
- Mortgage and closing services: As part of its “housing super app” plan, which aims to give customers everything they need for buying a home, from searching for properties to getting a loan,
This change lowers the danger of losing money and tries to create steady, high-margin income streams. This could make Zillow more appealing to investors over the long term.
Step 4: Looking at Zillow in relation to the housing market
- Zillow’s business isn’t the only one out there. In 2025, the real estate industry is sending forth mixed signals:
- Mortgage rates are still rather high, but they are a little lower than they were at their highest in 2023–2024.
- In certain areas, home prices fell by 1 to 2%, yet demand for rental apartments has gone up.
- New rules and practices, such as “pocket listings,” may make it harder for Zillow to get data, which might hurt user experience and ad revenue.
These tendencies make things harder and easier at the same time. If the housing market settles down and demand rises, Zillow could benefit from more business. However, Zillow’s growth could be slowed if rates continue high or listings go down.
Step 5: What Wall Street thinks and what analysts think will happen
Professional projections are an important component in deciding whether to purchase or sell Zillow stock. Wall Street is cautiously optimistic at the moment:
- The average price estimate for the next 12 months is roughly $82, which means there is about a 20% chance of it going up.
- Some analysts, such as Benchmark, think it might go as high as $95.
- Others are still cautious, saying that the high price and uncertainties about housing are to blame.
- There are both “Buy” and “Hold” recommendations, which is true: Zillow’s new plan looks good, but it hasn’t fully worked yet.
Step 6: Technical Analysis—What the Charts Show
Technical analysis gives you another level of information to help you make decisions. Around $86–$87, Zillow’s stock doesn’t seem to want to go up. If the price breaks above this level, especially with a lot of trading activity, it might mean that investors are quite confident and that the price is going up again.
If Zillow’s stock drops below $60–$62, on the other hand, it could mean that trust is waning, especially if it happens at the same time as bad housing statistics.
Step 7: Risks That Could Change Everything
There are dangers with any stock. The prominent ones with Zillow are:
- Dependence on the housing market: Zillow’s income could go down if house sales slow down or mortgage rates go up again.
- Threats from the government: Changes to the regulations concerning listings might make Zillow’s data less useful, which would make its platform less useful.
- Risk of execution: The move from iBuying to services is promising, but it hasn’t been tested on a wide scale yet.
- Risk of valuation: If Zillow’s future earnings don’t meet expectations, a high valuation doesn’t allow much room for error.
Step 8: Chances That Could Help Growth
On the plus side, Zillow has things that could make its stock go up:
- A rise in the housing market or a drop in mortgage rates
- Making the platform “sticky” by successfully combining rental, mortgage, and closing services
- Higher-than-expected profits thanks to high-margin services
- A breakout above the $86 resistance level might start momentum buying.
Step 9: A Step-by-Step Plan to Make a Decision
Here’s a useful, step-by-step way to figure out if Zillow stock is a good fit for your portfolio:
Step 1: Make a profile of your investor
Are you a risk-averse long-term investor, a short-term trader, or both?
Step 2: Keep an eye on technical levels
If you see a confirmed breakout above $86, it would be a good time for momentum traders to purchase.
If the stock drops below $60 because of poor news, you might want to think about it again.
Step 3: Keep an eye on financial reports
The next quarterly reports will show if rental and mortgage services continue to rise.
Step 4: Keep track of housing data
Zillow’s business is directly affected by home sales, mortgage rates, and the demand for rentals.
Step 5: Look at how the value compares to others.
If Zillow stays more expensive than its competitors and doesn’t expand quicker, it might be worth cutting back.
Step 10: Last Thoughts—Should You Buy, Hold, or Sell?
Buyers: Zillow’s shift to rentals and services could lead to long-term growth, and if you believe in its plan, purchasing when the stock drops to $68–$70 could be a good idea.
Holders: If you currently own Zillow, you might want to wait for the price to go up to $80–$95 over the following year, as long as you can handle the ups and downs.
For sellers: If you don’t like taking risks, are worried about the housing market, or don’t like high prices, it can make sense to lock in your earnings.
Conclusion
The way Zillow’s stock is doing today shows that the company is at a turning point. It has stopped flipping homes, which was too dangerous, and is now focusing on what it does best: linking millions of people to homes, rents, agents, and mortgages through a single digital platform.
