Why Zillow (ZG) Shares Are Falling Today
Stock Story
Published May 02, 2024 12:58PM ET
Updated May 02, 2024 01:32PM ET
Why Zillow (ZG) Shares Are Falling Today
What Happened: Shares of online real estate marketplace Zillow (NASDAQ:ZG) fell 9.4% in the pre-market session after the company reported first quarter results. Its EPS missed, and the number of website/mobile app visits fell short of Wall Street's projections. Additionally, revenue guidance for next quarter was below expectations, which is further driving weakness in the stock. On the other hand, Zillow exceeded analysts' revenue and EBITDA expectations this quarter. Overall, the results could have been better.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Zillow? Find out by reading the original article on StockStory, it's free.
What is the market telling us: Zillow's shares are very volatile and over the last year have had 15 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Zillow is down 30.7% since the beginning of the year, and at $39.03 per share it is trading 33.3% below its 52-week high of $58.51 from December 2023. Investors who bought $1,000 worth of Zillow's shares 5 years ago would now be looking at an investment worth $1,216.
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Written By: Stock Story
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