Zillow Group Inc (NASDAQ:ZG) Faces Challenges Amid Google's New Real Estate Ad Initiative

Font: Financial Modeling Prep  • Dec 15, 2025

• Zillow Group Inc (NASDAQ:ZG) has a price target of $95 set by RBC Capital, indicating a potential upside of 43.14%.
• Google's new home for-sale ads could threaten Zillow's lead-generation business, causing an 8.5% drop in ZG's stock price.
• The company's current stock price is $66.67, with a market capitalization of around $16.14 billion.

Zillow Group Inc (NASDAQ:ZG) is a prominent player in the online real estate marketplace, offering a platform for buying, selling, and renting homes. The company competes with other real estate platforms like CoStar Group Inc (NASDAQ:CSGP). Recently, Brad Erickson from RBC Capital set a price target of $95 for ZG, suggesting a potential upside of 43.14% from its current trading price of $66.37.

However, Zillow's shares are facing challenges due to Alphabet's (GOOGL) new initiative. Google is testing home for-sale ads at the top of its search results, which has led to a decline in ZG's stock price. The shares fell by 8.5% following reports of Google's new mobile real estate advertising format, which could threaten Zillow's lead-generation business.

Google's new ad unit, developed with ComeHome, allows users to view live MLS listings directly in search results. This feature includes a "Request a tour" button, enabling users to schedule home tours and connect with local agents quickly. Such capabilities could divert traffic from Zillow, impacting its Premier Agent program, a key revenue source.

The current stock price of ZG is $66.67, reflecting a decrease of $5.71 or approximately -7.89%. The stock has traded between $63.15 and $67.80 today. Over the past year, ZG reached a high of $90.22 and a low of $56.63. The company's market capitalization is around $16.14 billion, with a trading volume of 2,715,094 shares on the NASDAQ.