On August 6, Zillow declined 8.59% in pre-market trading, trading at $33.83/share, with turnover of $3,112.28. The drop follows the company's Q2 earnings release after the prior session's close, which revealed a significant revenue miss compounded by restructuring charges and soft forward guidance.
Zillow reported Q2 adjusted EPS of $0.52, beating the consensus estimate of $0.45 by 15.56% and representing a 30% year-over-year increase. However, revenue of $722 million fell short of the $758 million estimate. On a GAAP basis, the company swung to a loss after recording $36 million in restructuring costs tied to a 500+ employee layoff announced the day prior, plus $10 million in FTC litigation-related expenses.
The triple headwinds of a revenue shortfall, large-scale workforce reduction, and soft outlook intensified selling pressure. UBS had previously slashed its price target from $75 to $50 while maintaining a Buy rating, and RBC flagged Q3 industry data pointing to deceleration. These factors collectively weighed on market sentiment, triggering the sharp pre-market decline.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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