Key Takeaways
- Zillow (Z) touched a 52-week low of $41.91, declining 38% year-over-year
- Shares currently trade 55% beneath their 52-week peak of $93.88
- JPMorgan pushed back against concerns about AI threats and legal challenges
- The company’s board authorized an additional $1.25 billion for stock repurchases
- Shares climbed approximately 6% Friday following JPMorgan’s analysis before a March 24 AI event
Zillow experienced a turbulent week before staging a Friday comeback.
Following a dip to a 52-week bottom of $41.91 earlier this week, Zillow (Z) rallied approximately 6% on Friday after receiving support from JPMorgan analysts. The financial institution challenged the pessimistic outlook that has weighed on shares recently.
Shares have tumbled roughly 38% during the past twelve months. Looking at just the last six months, the stock has plunged nearly 49%. At its recent bottom, shares were down 55% from their 52-week peak of $93.88.
Despite the significant decline, the company maintains a market capitalization hovering around $10 billion.
JPMorgan maintained that current worries surrounding artificial intelligence competition, pending litigation, regulatory headwinds, and shifting listing practices have been exaggerated by market participants. The firm believes investors are discounting Zillow’s fundamental business strength and strategic vision.
Analysts at the bank also drew attention to Zillow’s scheduled AI summit on March 24 as a possible stock driver. JPMorgan suggested the conference could showcase how Zillow’s proprietary data assets, vertical integration capabilities, and streamlined operational systems provide the company with sustainable competitive advantages.
Technical indicators continue flashing a “sell” signal for the stock, which remains down almost 40% since the start of the year. The stock sees typical daily volume of approximately 4.3 million shares.
Fourth Quarter Results: Pros and Cons
Zillow delivered Q4 2025 results that presented a mixed bag. The company posted revenue of $654 million, surpassing analyst expectations of $650.23 million. However, earnings per share registered at $0.39, falling slightly short of the $0.40 consensus estimate.
On Wall Street, Keefe, Bruyette & Woods reduced its price objective from $65 down to $60, though maintained its Market Perform recommendation. Analysts at the firm observed that Zillow’s 2026 outlook aligned reasonably well with projections, but highlighted margin headwinds stemming from legal expenses.
William Blair similarly maintained a Market Perform stance following the buyback disclosure.
Share Repurchase Authorization Grows
Zillow’s board greenlit a substantial increase to its share repurchase initiative. The authorization added $1.25 billion to the existing program, elevating total available buyback authorization to approximately $1.3 billion.
InvestingPro analysis suggested Zillow might be trading below its intrinsic value at present prices. The service also highlighted that the stock has experienced significant price volatility, aligning with recent trading patterns.
JPMorgan’s defense of the stock and the scheduled AI summit on March 24 represent the two primary near-term catalysts on investors’ radar.
