Zillow Group shares fell nearly 13% in a single day following its second-quarter earnings report. Revenue rose 18% year over year, with mortgage revenue up 75% and rentals revenue up 31%, but traffic to its mobile apps and sites declined 2% and average monthly unique users fell 2% to 239 million. The drop was also driven by news that Alphabet's Google will now display real estate listings in all 50 states, likely impacting Zillow. Management highlighted that consumers using its AI mode spend more than three times as long on the platform and contact agents at nearly three times the rate of non-AI users.
Zillow Group Inc Class CZillow's Q2 earnings report triggered a 13% stock drop despite revenue growth, due to declining traffic and competitive threat.
Alphabet Inc Class CGoogle's expansion into real estate listings in all 50 states intensifies competition for Zillow.
