Can Zillow Group's (ZG) AI Bet With Zillow Pro Reshape Its Digital Growth Trajectory?

• Zillow recently introduced Zillow Pro, an AI-powered suite unifying critical agent tools like Follow Up Boss, My Agent, and Agent Profiles to help real estate professionals close more transactions and deliver a seamless client experience.
• This comprehensive technology investment signals Zillow's deepening commitment to digital transformation in real estate, aiming to create smarter workflows for agents and ultimately better outcomes for consumers.
• We'll now explore how Zillow Pro’s integration of AI-driven agent tools could influence the company's future digital growth narrative.

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Zillow Group Investment Narrative Recap

To be a Zillow shareholder, you need conviction in the company's ability to lead digital transformation in real estate and convert product innovation, especially AI-powered agent tools, into sustained market share and higher user monetization. The recent Zillow Pro announcement meaningfully amplifies this potential by deepening agent engagement, which could accelerate the most important catalyst: higher conversion rates and recurring software revenue, even amid continued pressure from low housing affordability and regulatory headwinds. However, if agents or consumers fail to adopt these new tools at scale, execution risk remains front and center.

Of the latest company actions, Zillow’s expanded partnership with Esusu stands out for its complementary focus on technology-enabled value for renters. While most relevant to the rental business, this initiative directly supports a core catalyst: driving ancillary revenue and deepening consumer relationships, further justifying investment in integrated software and data platforms like Zillow Pro.

On the flip side, regulatory disruption to real estate commissions could upend Premier Agent economics, an essential risk investors need to be aware of, especially if...

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

Zillow Group's outlook forecasts $3.6 billion in revenue and $415.2 million in earnings by 2028. This is based on a projected annual revenue growth rate of 14.8% and an increase in earnings of $477.2 million from the current earnings of -$62.0 million.

Uncover how Zillow Group's forecasts yield a $88.46 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Seven individual fair value estimates from the Simply Wall St Community put Zillow’s worth between US$28 and US$118 per share. Even as participants are sharply divided on valuation, many see the shift toward integrated digital transaction ecosystems as a primary source of future upside for the company’s performance.

Explore 7 other fair value estimates on Zillow Group - why the stock might be worth as much as 59% 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 3 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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