On August 6, Zillow declined 15.19% in regular trading, trading at $32.205/share, with turnover of $22.09 million. The steep drop was triggered by a confluence of negative catalysts surrounding its Q2 earnings release.

Zillow reported Q2 adjusted EPS of $0.52, beating the consensus estimate of $0.45 by 15.6% and representing a 30% year-over-year increase. However, revenue of $722 million significantly missed the Street estimate of $758 million, making the top-line shortfall the primary driver of selling pressure. The company also issued soft forward guidance and confirmed $36 million in restructuring costs along with $10 million in FTC litigation-related expenses, further weighing on profit expectations.

Additionally, Zillow announced an organizational restructuring one day prior to the earnings release, cutting over 500 positions. This strategic contraction signal intensified concerns over growth deceleration. UBS had previously slashed its price target from $75 to $50 while maintaining a Buy rating, and RBC noted that Q3 industry data pointed to a decelerating trend. The triple headwinds of a revenue miss, soft guidance, and large-scale layoffs drove the intraday decline well beyond pre-market losses.

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