Why Did Zillow’s Stock Fall By 26% Last Month?

November 9th, 2021 · by Trefis Team
ZYTD-59.9%SPYYTD+12.7%XLCYTD-4.8%
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Zillow’s stock (NASDAQ: Z) fell by 26% in the last twenty-one trading days. In comparison, the broader S&P500 index rose by 7.1% over the same period. The American online real estate marketplace company saw its stock fall post Q3 results where the company announced that they were closing the homebuying business, i.e. Zillow Offers. Zillow CEO Rich Barton said “We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated, Continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.” Now, is Z stock poised to grow? Based on our machine learning analysis of trends in the stock price over the last six years, there is a 50% chance of a rise in Z stock over the next month (twenty-one trading days). See our analysis on Zillow’s Stock Chance Of Rise for more details.

Five Days: Z -30%, vs. S&P500 1.9%; Underperformed market

(1% event probability)

  • Zillow’s stock declined 30% over a five day trading period ending 11/8/2021, compared to the broader market (S&P500) which rose by 1.9%
  • A change of -30% or more over five trading days is an extremely rare event, which has occurred 8 times out of 1564 in the last six years

Ten Days: Z -29%, vs. S&P500 2.9%; Underperformed market

(1% event probability)

  • Zillow’s stock declined 29% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 2.9%
  • A change of -29% or more over ten trading days has a 1% event probability, which has occurred 18 times out of 1559 in the last six years

Twenty-One Days: Z -26%, vs. S&P500 7.1%; Underperformed market

(3% event probability)

  • Zillow’s stock declined 26% over the last twenty-one trading days (one month), compared to the broader market (S&P500) rise of 7.1%
  • A change of -26% or more over twenty-one trading days has a 3% event probability, which has occurred 44 times out of 1548 in the last six years

There are several peers in its sector that look like a Better Bet Than Z Stock. Also, Zillow Peer Comparisons summarizes how the company fares against peers on metrics that matter.

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since 2016.

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