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Investing.com - BTIG reiterated a Neutral rating on Zillow Group (NASDAQ:ZG) as Google expands its real estate listings feature nationally. The stock has declined over 50% year-to-date to $33.05, trading near its 52-week low of $34.06.
Google announced today it will roll out a for-sale listings carousel on mobile devices across the country after testing the feature in select cities since December 2025. The search giant’s partner does not yet have full national coverage, suggesting the rollout will proceed city-by-city rather than as an immediate broad launch.
BTIG notes Google is targeting the same buyer-side agent budget as Zillow and has previously demonstrated patience in building market share in other industries such as travel. The firm expresses concern about Google’s access to listings as artificial intelligence begins to reshape top-of-funnel activity in real estate.
The competitive pressure from Google comes as Zillow faces a separate challenge from Compass (NYSE:COMP) over private listings. BTIG maintains a Buy rating and $12 price target on Compass.
BTIG states that while the risk is difficult to quantify, Zillow’s long-standing dominance in real estate appears less certain as competition among property portals continues to escalate. Despite the competitive headwinds, InvestingPro analysis suggests the stock is undervalued at current levels, with the company maintaining its position as a prominent player in the Real Estate Management & Development industry.
In other recent news, Zillow Group reported its first-quarter results, revealing revenue that met expectations and an EBITDA that was 8% higher than prior estimates from Visible Alpha. This financial update comes amid a backdrop of mixed analyst sentiment. Cantor Fitzgerald recently lowered its price target for Zillow to $41 from $48, maintaining a Neutral rating due to ongoing challenges in the real estate market. Meanwhile, RBC Capital also reduced its price target from $95 to $70, but maintained an Outperform rating, citing concerns over Zillow’s progress with its AI strategies.
In addition to financial updates, Zillow is engaged in legal action, having filed a lawsuit against Compass Inc. and Midwest Real Estate Data LLC. The lawsuit accuses these entities of colluding to hide home listings from potential buyers, which Zillow claims contradicts its transparency-focused business model. Furthermore, a dispute in Chicago led to the disappearance of thousands of home listings from Zillow after MRED cut off its MLS feed. Despite these challenges, Citizens reaffirmed its Market Outperform rating and a $75 price target for Zillow shares.
Additionally, Google is testing a new feature that could impact Zillow’s market presence. The tech giant is experimenting with for-sale home listings in mobile search results across several U.S. cities, potentially increasing competition in the online real estate space. These developments paint a complex picture for Zillow as it navigates both market challenges and competitive pressures.
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Source: Investing.com