Group 1 - Bernstein raised Zillow's target price from $75 to $105, indicating a positive outlook for the company [1] - The rating was upgraded from "Market Perform" to "Outperform," suggesting increased confidence in Zillow's performance relative to the market [1]

Market Overview - The S&P 500 Index is down -0.17%, while the Dow Jones Industrials Index is up +0.77%, and the Nasdaq 100 Index is down -0.80% [1] - Weakness in chipmakers, particularly Nvidia, which is down more than -2%, is impacting the broader market due to regulatory actions from China's Cyberspace Administration [2][11] - The overall market is negatively affected by the decline in major technology stocks, with Amazon, Tesla, and Meta Platforms all down more than -1% [12] Economic Indicators - US housing news showed weaker-than-expected results, with August housing starts falling -8.5% month-over-month to 1.307 million, below expectations of 1.365 million [3] - Building permits also fell unexpectedly by -3.7% month-over-month to a 5.25-year low of 1.312 million, against expectations of an increase [3] - MBA mortgage applications rose +29.7% in the week ended September 12, with refinancing applications up +57.7% [4] Federal Reserve Actions - The Federal Reserve approved a quarter-percentage-point rate cut and indicated two additional cuts are expected before the end of the year due to concerns over the labor market [1][5] - The market anticipates a total of about 70 basis points in rate cuts by year-end, with a focus on the Fed's new economic forecasts [5] Company-Specific Developments - Uber Technologies is down more than -4% following insider selling by CEO Khosrowshahi, who sold $28.6 million in shares [13] - Manchester United reported a Q4 loss and cut its 2026 revenue outlook, leading to a decline of more than -6% in its stock [12] - Roivant Sciences is up more than +12% after its drug met primary endpoints in a Phase 3 trial [14] - Workday is up more than +8% after an upgrade from Guggenheim Securities [14] - Walmart is up more than +2% following a price target increase from Bank of America [15]

Group 1 - Zillow's stock experienced an increase following an upgrade from Bernstein, which highlighted improving earnings quality and the potential for interest rates to decrease [2] - Z stock rose by 2.28% to $90.57 in pre-market trading, while ZG stock increased by 2.98% to $87.64 [2]

Upgrades Summary - Loop Capital upgraded Netflix (NFLX) to Buy from Hold with a price target of $1,350, increased from $1,150, citing "exceptional" engagement on the platform in Q3 and a "strong" Q4 content slate [2] - Guggenheim upgraded Workday (WDAY) to Buy from Neutral with a price target of $285, indicating that Workday will be well positioned to accelerate growth when the environment improves [2] - Piper Sandler also upgraded Workday to Neutral from Underweight with a price target of $235, up from $220 [2] - Bernstein upgraded Zillow Group (ZG) to Outperform from Market Perform with a price target of $105, increased from $75, highlighting mid-teens revenue growth with Rentals and Showcase as growth drivers [2] - Roth Capital upgraded Kroger (KR) to Buy from Neutral with a price target of $75, up from $66, noting strong alternative profit streams while the stock's valuation lags peers [2] - Berenberg upgraded AbbVie (ABBV) to Buy from Hold with a price target of $270, increased from $170, stating the company has "successfully navigated the largest drug patent expiry in the world" [2]

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Enphase Energy Inc. (Symbol: ENPH), where a total volume of 33,199 contracts has been traded thus far today, a contract volume which is representative of approximately 3.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 47.8% of ENPH's average daily trading volume over the past month, of 6.9 million shares. Particularly high ...

Mortgage Rates Overview - Mortgage rates are trending lower ahead of an anticipated Federal Reserve rate cut, with the current 30-year mortgage rate at 6.16%, down 12 basis points since Friday [1] - The 15-year fixed interest rate has decreased by three basis points to 5.46% [1] Current Mortgage Rates - Current national average mortgage rates include: - 30-year fixed: 6.16% - 20-year fixed: 5.68% - 15-year fixed: 5.46% - 5/1 ARM: 6.65% - 7/1 ARM: 6.58% - 30-year VA: 5.78% - 15-year VA: 5.29% - 5/1 VA: 5.94% [4] Refinance Rates - Refinance rates are generally higher than purchase rates, with the current national average for 30-year fixed refinance at 6.20% [15] Impact of Federal Reserve Decisions - The trajectory of future mortgage rates is closely tied to the Federal Reserve's decisions, with a 96% chance predicted for a rate decrease at the upcoming meeting [13] - Mortgage rates have been falling since early September, but their reaction to a potential Fed rate cut remains uncertain [14] Long-term Outlook - Economists do not expect significant drops in mortgage rates before the end of 2025, with any potential decreases in 2026 likely to be modest [16][17]

Company Overview - Zillow is recognized as a household name with strong brand awareness, attracting over 240 million average monthly unique users across its apps and websites [1] Business Model - The company is developing a "housing super app" aimed at becoming a comprehensive platform for all things related to moving, including buying, selling, renting, and financing properties [1]

Company Overview - Zillow is recognized as a household name with strong brand awareness, attracting over 240 million average monthly unique users across its apps and websites [1] Business Model - The company is developing a "housing super app" aimed at becoming a comprehensive platform for all things related to moving, including buying, selling, renting, and financing properties [1]

Group 1 - Zillow and Berkshire Hathaway HomeServices have entered an agreement to provide U.S.-based agents access to Zillow Showcase, an AI-powered premium listing experience [1][2] - The partnership aims to equip agents with advanced technology and digital marketing tools to enhance their competitiveness in the real estate market [2][3] - Zillow Showcase listings are expected to expedite sales, with properties selling for 2% more and being more likely to go pending within the first 14 days on the market compared to non-Showcase listings [3][4] Group 2 - The Showcase product features an interactive design that includes high-resolution images and room-by-room photo organization, which increases exposure and engagement with potential buyers [3][4] - Continuous enhancements to Showcase, such as the introduction of SkyTour, aim to provide a more immersive home shopping experience [4] - Agents can access performance dashboards for their Showcase listings, allowing them to track data and analytics for better decision-making [4] Group 3 - Berkshire Hathaway HomeServices has approximately 45,000 real estate professionals and over 1,400 offices globally, completing more than USD 127.7 billion in real estate sales in 2024 [7][8]

Core Viewpoint - Zillow Group has faced significant challenges since the pandemic, including a sharp decline in stock value due to internal missteps and changing macroeconomic conditions, but recent improvements in fundamentals and technical indicators suggest a potential recovery [4][11][18]. Group 1: Stock Performance and Market Context - Zillow Group's stock price has fluctuated dramatically, ranging from $18 to $212, and is currently down nearly 50% from its 2021 high [5][4]. - The stock has shown recent momentum, increasing nearly 20% in the last three months and approaching its 2025 high of $85.29 [14][18]. - A Golden Cross technical signal has formed, indicating a potential bullish trend, similar to a previous occurrence that led to an 80% appreciation in six months [12][11]. Group 2: Company Challenges and Strategic Missteps - Zillow's iBuying program, Zillow Offers, launched in 2018, faced significant issues, including overpaying for homes and failing to adapt to local market conditions, leading to substantial losses [9][10]. - By Q3 2021, Zillow reported a $422 million loss from the Zillow Offers segment, prompting the shutdown of the program and layoffs [10][11]. Group 3: Recent Developments and Financial Performance - Zillow's Q2 2025 revenue reached $655 million, a 15% year-over-year increase, driven significantly by rental revenue, which grew 36% year-over-year [18][19]. - The company reported earnings per share of 40 cents, missing the analysts' estimate of 44 cents, but this was largely attributed to increased marketing expenses and strategic investments [19][18]. - Following the Q2 report, 10 research firms raised their price targets for Zillow, with a new consensus price estimate of $85.62, indicating a 7% upside from current prices [20][17].