Zillow GroupZG

Wells Fargo lowered its price target from $46 to $35. This adjustment brings their target in line with where the stock is currently trading. Because the firm did not change its overall rating on the stock, this is a routine adjustment to reflect recent market movement rather than a change in their view of the business.

Source: Wells Fargo

Zillow is cutting just over 500 jobs, or about 7 percent of its staff, as it tries to align its costs with a slow real estate market. This is the second round of layoffs this year for the Seattle-based company.

While layoffs are often seen as a way to protect profits, they also signal that the company does not expect the housing market to recover quickly. For a business trying to grow into a housing super app, these cuts suggest a shift toward defensive cost-cutting rather than aggressive expansion.

Bernstein analysts downgraded Zillow's stock to Market Perform, which is their way of saying they expect it to perform in line with the broader market rather than beat it. They set a price target of $38.

This move suggests that analysts are becoming more cautious about Zillow's ability to grow quickly while the housing market remains sluggish. Even though the company's revenue is growing, the recent layoffs and a quarterly loss have made it harder for some analysts to see a clear path to high profits in the near term.

Source: Bernstein

The average rate for a 30-year fixed mortgage rose to 6.69 percent this week, up from 6.66 percent last week. This marks the highest level for borrowing costs in more than a year.

Rising rates are a direct challenge for Zillow because they make homes less affordable and discourage owners from selling. When fewer people are looking to buy or sell, real estate agents spend less on Zillow's advertising tools, which is the company's main source of profit.

Law firms are reminding investors of an August 10 deadline to participate in a class action lawsuit against Zillow. The suit claims the company made misleading statements about its business between early 2025 and mid-2026. These types of lawsuits are common after a stock price drops and often take years to resolve. While they can be a distraction for management, they rarely have a major impact on the company's day-to-day operations unless they lead to a very large settlement.