Zillow Group's stock plummeted 9.56% during intraday trading on Wednesday, following the company's release of mixed fourth-quarter financial results and subsequent price target reductions by multiple analysts.
The residential real estate platform reported quarterly results after the market closed on Tuesday, with revenue of $654 million exceeding analyst estimates but adjusted earnings per share of 39 cents falling short of expectations. While the company provided first-quarter revenue guidance that surpassed estimates, the earnings miss triggered negative sentiment among investors.
Following the earnings release, numerous analysts cut their price targets on Zillow shares, including Bernstein, BofA Global Research, Piper Sandler, Barclays, JP Morgan, Wells Fargo, UBS, Canaccord, and D.A. Davidson. The collective downgrades created substantial selling pressure on the stock during the trading session.