Last week, HomeServices of America announced a collaboration with Zillow Group to introduce the AI-powered Zillow Showcase, aiming to enhance listing capabilities and sales for agents. However, Zillow's share price saw a 12% decline, mirroring the broader market's performance amidst heightened volatility driven by trade tensions and tariff impositions. Despite the positive developments from the collaboration, the tariff-related stock market downturn seemed to overshadow the good news from Zillow. This demonstrates how significant external factors can weigh heavily on individual stock performances, even in the face of promising internal announcements and innovations.

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Over the past five years, Zillow Group's total shareholder return, which includes both share price appreciation and dividends, was an impressive 55.94%. In comparison to the broad US Real Estate industry, which recorded a much lower return over the past year, Zillow's performance is noteworthy. Within the same period, Zillow exceeded the US market, which experienced a decline of 3.8%.

The collaboration with HomeServices of America and other recent partnerships could positively contribute to Zillow's revenue streams and earnings forecasts. Zillow's anticipated low to mid-teens revenue growth for FY 2025 aligns with these strategic advances, suggesting a potential upward trajectory. However, external market pressures, as seen from the recent 12% share price decline, highlight the importance of broader economic conditions on performance. Despite this, analysts maintain an optimistic outlook, with the price target significantly higher than the current share price, indicating confidence in Zillow's longer-term potential. The stock is trading at a substantial discount to analyst price targets, reflecting room for future growth.

Review our historical performance report to gain insights into Zillow Group's track record.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:ZG.

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