Stock Track | Zillow Soars 5.06% as Court Battle with Compass Could Strengthen Market Position

Stock Track11-22

Zillow Group (Z) saw its stock price surge 5.06% in intraday trading on Friday, as investors reacted positively to developments in the company's ongoing legal battle with Compass. The case, currently being heard in a Manhattan federal court, could potentially reshape the way homes are sold in the United States and solidify Zillow's dominant position in the online real estate marketplace.

At the heart of the dispute is Zillow's policy requiring agents to list homes on the multiple listing service (MLS) within a day of public marketing. This policy clashes with Compass's "Private Exclusives" strategy, which allows sellers to restrict their listings to Compass agents and clients before appearing on the MLS. Compass has sued Zillow, claiming the latter's policy is anticompetitive and harmful to its business model.

Investors appear to be betting on a favorable outcome for Zillow, which could reinforce its market-leading position. Gordon Haskett analyst Robert Mollins maintains a Buy rating on Zillow with an $87 price target, stating, "We see a favorable risk/reward as we believe investor concerns around competitive encroachment and legal risks are overstated." This optimism, coupled with Zillow's strong market presence - with its products used by agents in an estimated 80% of U.S. home transactions - seems to be driving the stock's upward movement.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment