How Investors May Respond To Zillow Group (ZG) Launching AI-Powered Zillow Pro and Expanded Credit-Building Tools

• Earlier this month, Zillow launched Zillow Pro, an AI-powered platform that integrates key agent tools and enhances real-time client insights, while also announcing an expanded rent reporting partnership with Esusu to help renters build credit.
• By enabling persistent agent branding and easier credit-building for millions of users, Zillow is streamlining the real estate journey for both professionals and consumers in one of its largest product updates in years.
• We'll explore how the debut of Zillow Pro could further accelerate Zillow's digital transformation and AI-driven agent service capabilities.

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Zillow Group Investment Narrative Recap

For Zillow shareholders, the core belief centers on the company’s ability to capture greater market share and monetization as the real estate industry digitizes further, powered by AI and integrated platforms. The launch of Zillow Pro meaningfully advances this narrative as it supports agent productivity but does not materially change the immediate short-term catalyst, which remains tied to sustaining transaction volumes despite persistently low home affordability and high interest rates. The most important risk continues to be exposure to lower transaction activity and potential regulatory impacts on Premier Agent revenue.

Among recent announcements, Zillow’s new partnership expanding rent reporting capabilities with Esusu is particularly relevant. By allowing renters to improve their credit and work toward homeownership, Zillow is extending its platform’s utility to a wider range of consumers. This expansion aligns with efforts to drive ancillary revenues and reinforces the company’s attempt to support both transaction volume and long-term user engagement.

Yet, in contrast to these technology advances, investors should be mindful of ongoing risks tied to...

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

Zillow Group's narrative projects $3.6 billion in revenue and $415.2 million in 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 $88.46 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided 7 distinct fair value estimates for Zillow stock, from US$28.38 to US$91.99 per share. As enthusiasm for digital real estate tools builds, uncertainty around transaction volumes and regulatory headwinds remains a significant factor to consider, explore the full range of investor perspectives before making up your mind.

Explore 7 other fair value estimates on Zillow Group - why the stock might be worth as much as 32% 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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