Zillow's stock experienced a pre-market plunge of 5.04% on Wednesday, moving against broader market trends as Nasdaq and S&P 500 futures showed gains.

The decline 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 of $650.29 million and representing 18% year-over-year growth, its adjusted earnings per share of 39 cents fell short of the 40-cent consensus estimate. Additionally, Canaccord lowered its price target on Zillow Group to $72 from $84, maintaining a Hold rating.

Despite Zillow reporting its first year of unadjusted profit since 2012 and providing first-quarter revenue guidance that surpassed expectations, investor concerns persisted. These worries include potential impacts from artificial intelligence, which had previously sparked a selloff in the shares earlier in the month.