1. Zillow reported first-quarter net profit, its first since 2022. 2. Second-quarter guidance disappointed, impacting stock price in premarket trading. 3. Company expects rental revenue to grow by 40% and revenue growth in low-to-mid teens. 4. Zillow is shifting towards a 'housing super app' model, diversifying its services. 5. Stock is down 8.3% in 2025 amid a sluggish housing market.
Despite beating earnings, the weak second-quarter guidance raises concerns on future performance. Historical examples include 2022 when conservative guidance led to negative market reactions.
The guidance for the upcoming quarters directly influences investor sentiment and stock price expectations. The notable shift in business model and profit generation adds complexity to the market's perception.
The immediate market reaction indicates short-lived effects from guidance on stock performance. Previous instances show market adjustments in response to quarterly forecasts tend to occur quickly.