Shares of Zillow Group Inc. (Z) plummeted 5.58% in pre-market trading on Wednesday, following the company's mixed fourth-quarter earnings report and weaker-than-expected guidance for the first quarter of 2025.
The real estate technology company's stock took a hit as it faced the challenges of the softening housing market, with high mortgage rates continuing to dampen home sales and demand for its services.
Zillow reported revenue of $554 million for the fourth quarter, exceeding analyst estimates of $545.9 million. However, its non-GAAP earnings of $0.27 per share fell short of expectations, which ranged from $0.28 to $0.29 per share. More concerning for investors was the company's outlook for the first quarter of 2025, with projected revenue between $575 million and $590 million, missing analysts' expectations of around $600 million.
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