Zillow Shares Surge After Reporting Earnings Beat

Shares of the real estate firm jumped as much as 9% in extended trading Wednesday

Home for sale

Phillip Spears / Getty Images

Shares of Zillow (ZG) jumped as much as 9% in extended trading Wednesday before giving back gains, after the real estate firm beat earnings estimates and reported fourth-quarter revenues of $435 million that beat estimates of $413 million.

Zillow made a variety of cost-cutting moves last year to help it weather the housing downturn, including slashing 25% of its workforce and ending its iBuying home-flipping business.

In a letter to shareholders, Zillow CEO Rich Barton said he’s optimistic about the outlook heading into 2023, citing lower mortgage rates from their June peak and a “looming backlog of homes under construction,” which will help affordability.

Housing Market Trends

Yesterday, the NAHB's Housing Market Index showed builder sentiment improved this month at the fastest pace in a decade, suggesting America’s home builders are growing more bullish on the housing market as buyer demand picks up, driven in part by slightly lower mortgage rates. The NAHB expects a rebound back to traditional construction levels later this year and in early 2024.

This morning, the U.S. Census Bureau reported that housing starts dropped 4.5% in January at a seasonally adjusted rate of 1.31 million units. Building permits, which signal future housing activity, edged 0.1% higher last month at a seasonally adjusted rate of 1.34 million units, up from 1.3 million in December.

Shares of Zillow are up over 50% since the start of 2023.

Zillow (ZG) Stock YTD


Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. Zillow Group. "Zillow Group Reports Fourth-Quarter and Full-Year 2022 Financial Results."

  2. Zillow Group. "Q4 2022 Shareholder Letter."

  3. Census.gov. "Monthly New Residential Construction, January 2023."

Take the Next Step to Invest
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.