1. Zillow shares plunged over 9% due to Google testing real estate listings. 2. Google's listings could directly compete with Zillow's Premier Agent program. 3. Analysts see limited near-term impacts, but long-term risks persist. 4. Zillow's traffic stems largely from direct sources, potentially mitigating Google’s impact. 5. Stock remains down over 8% year-to-date amid market uncertainty.
FAQ
Why Bearish?
Zillow faced immediate stock declines due to competitive threats from Google, reminiscent of past market shake-ups during tech entries.
How important is it?
The shift in real estate listings to Google signifies potential market disruption for Zillow.
Why Long Term?
Google's listings could gradually shift traffic away from Zillow, similar to past intrusions in established industries.