Why Zillow Group (ZG) Is Up 5.1% After Launching SkyTour 3D Aerial Home Tours and What's Next

• Zillow Group recently launched five new digital tools aimed at improving transparency and convenience for home buyers and renters, headlined by SkyTour, an interactive 3D aerial home tour using advanced Gaussian splatting technology, now available on select listings.
• This rollout positions Zillow at the forefront of digital real estate experiences, leveraging immersive technology and real-time data tools to simplify complex home shopping decisions.
• We'll explore how Zillow's introduction of SkyTour, its first-of-its-kind 3D aerial tour, could influence the company's future investment narrative.

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Zillow Group Investment Narrative Recap

To be a Zillow Group shareholder, you need to believe the company can drive sustained digital transformation in real estate, expanding its integrated marketplace amid major affordability headwinds and rental competition. While the launch of immersive features like SkyTour and new data tools improves the platform’s appeal, the near-term catalyst, accelerating traction in rentals, remains largely unchanged; however, the risk of margin compression from continued investment and intensified competition in the rentals segment has not materially shifted following these announcements.

Among the recent updates, the Rentals Costs & Fees Breakdown stands out, directly contributing to transparency for renters, supporting Zillow’s ambitions to deepen user engagement and reinforce its position as the leading digital rentals platform. This tool aligns with ongoing catalysts that center on network effects and enhanced monetization by making Zillow indispensable to both consumers and property managers.

Yet, beneath the innovation, investors should also be aware of growing risks around…

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

Zillow Group's outlook anticipates $3.5 billion in revenue and $372.9 million in earnings by 2028. Achieving these targets implies a 14.9% annual revenue growth rate and a $453.9 million increase in earnings from the current level of -$81.0 million.

Uncover how Zillow Group's forecasts yield a $80.29 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Fair value estimates from seven members of the Simply Wall St Community span a wide range, from US$25.79 to US$103.56 per share. While views are diverse, many see opportunity linked to Zillow’s push for a seamless, tech-enabled experience but emphasize that persistent housing affordability challenges may restrict revenue growth and affect overall performance; explore how these factors shape different outlooks.

Explore 7 other fair value estimates on Zillow Group - why the stock might be worth less than half 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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