Zillow's stock plummeted 5.27% during intraday trading on Friday, extending a post-earnings selloff.

The decline follows the company's Q1 earnings release, which showed adjusted earnings per share of $0.53, beating analyst estimates of $0.46. However, investor sentiment turned negative due to a reported decline in website and application traffic during the quarter, raising concerns about weakening user engagement and intensifying competition in the online real estate space.

Adding to the selling pressure, multiple analysts lowered their price targets on Zillow. Morgan Stanley cut its target to $70 from $82, while Barclays reduced its target to $54 from $58, both maintaining Equal Weight ratings on the shares. The combination of disappointing traffic metrics and downward revisions from Wall Street analysts contributed to the stock's sharp decline.