Zillow Group (ZG) experienced a significant pre-market decline of 5.83% on Wednesday, moving against broader market trends.
The residential real estate platform reported mixed fourth-quarter financial results after the market closed on Tuesday. While quarterly revenue of $654 million exceeded analyst estimates of $650.29 million and showed 18% year-over-year growth, adjusted earnings per share of 39 cents fell short of the 40-cent consensus estimate. The company provided first-quarter revenue guidance that surpassed expectations.
Following the earnings release, multiple analysts cut their price targets on Zillow shares, contributing to negative sentiment. Canaccord lowered its target to $72 from $84, JP Morgan reduced its target to $84 from $95, Wells Fargo cut to $60 from $61, UBS lowered to $80 from $92, and several other firms including Piper Sandler, Barclays, BofA Global Research, and D.A. Davidson also reduced their price objectives.