Zillow Group shares fell nearly 13% in a single day in early August after the company reported second-quarter earnings and Alphabet's Google announced it will display real estate listings in all 50 states. Revenue rose 18% year over year, with mortgage revenue up 75% and rentals revenue up 31%, but traffic to Zillow's mobile apps and sites declined 2% and average monthly unique users fell 2% to 239 million. Management highlighted that consumers using AI mode spend more than three times as long on Zillow and contact an agent at nearly three times the rate of non-AI users, and the company recently laid off more than 500 people. The stock is down about 60% over the past year.
Alphabet Inc Class CGoogle's expansion into real estate listings is a competitive threat to Zillow, but Alphabet's own impact is indirect.
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Zillow Group Inc Class CEarnings report showed declining traffic and user metrics, leading to a 13% stock drop.
