Can Broader AI Adoption With Berkshire Hathaway Boost Zillow Group's (ZG) Edge in Digital Real Estate?

• Earlier this week, Berkshire Hathaway HomeServices announced an agreement to provide its U.S. network members with access to Zillow Showcase, Zillow’s AI-powered premium listing platform, expanding on their initial partnership with HomeServices of America.
• This collaboration signals the growing adoption of advanced digital marketing tools across the real estate sector, as leading brokerages seek to equip agents with innovative resources to stand out in a competitive market.
• We'll explore how expanded access to Zillow Showcase for a major brokerage network underscores the company's push for digital innovation and agent engagement.

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Zillow Group Investment Narrative Recap

To be a shareholder of Zillow Group, you need to believe in the digital transformation of real estate and the company's ability to drive product innovation at scale. The expanded partnership with Berkshire Hathaway HomeServices reinforces Zillow's push to deepen agent adoption of its AI-powered Showcase platform, but it is unlikely to offset the most important risk in the near term: persistently low housing market activity, which could limit advertising and lead generation revenue as affordability remains challenged. Among recent announcements, the July launch of new features including Offer Insights and upgrades to BuyAbilitySM stands out, directly supporting the story of ongoing digital innovation that underpins Zillow’s efforts to increase agent engagement, user conversion, and monetization per transaction. Zillow’s continued rollout of advanced tools aims to deliver value for agents and consumers alike, yet also signals the high execution bar the company sets for itself, especially given its history with new business initiatives. In contrast, signs of commission compression and changing regulatory frameworks could quickly become more pressing for those tracking Zillow’s future revenue streams...

Read the full narrative on Zillow Group (it's free!)

Zillow Group's narrative projects $3.6 billion revenue and $415.2 million earnings by 2028. This requires 14.8% yearly revenue growth and a $477.2 million increase in earnings from the current -$62.0 million.

Uncover how Zillow Group's forecasts yield a $86.96 fair value, a 5% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community contributors have published seven distinct fair value estimates for Zillow Group ranging from US$25.79 to US$94.13 per share. In this context of widely differing opinions, recall that Zillow’s ongoing innovation in digital marketing is seen by many analysts as a key driver for increasing agent engagement and long-term growth, but it also heightens the importance of execution and adaptation as industry conditions evolve.

Explore 7 other fair value estimates on Zillow Group - why the stock might be worth as much as 14% more than the current price!

Build Your Own Zillow Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Zillow Group research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Zillow Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zillow Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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