Zillow Group's stock plummeted 8.80% during intraday trading on Wednesday, marking a significant decline against broader market trends.

The sharp drop follows the company's release of mixed fourth-quarter financial results after the market closed on Tuesday. While Zillow reported revenue of $654 million, exceeding analyst estimates and showing 18% year-over-year growth, its adjusted earnings per share of 39 cents fell short of the 40-cent consensus estimate.

Investor sentiment was further dampened by multiple analyst price target reductions. Canaccord lowered its target on Zillow to $72 from $84, maintaining a Hold rating, while UBS reduced its target to $80 from $92, though keeping a Buy rating. Despite reporting its first year of unadjusted profit since 2012 and providing strong first-quarter revenue guidance, persistent concerns about the potential impact of artificial intelligence on the company's business model contributed to the selloff.