Core Insights - Zillow's stock fell 8% due to concerns over Alphabet testing real estate listings in Google search results, which could disrupt Zillow's market position [1][2] - Alphabet's potential entry into the real estate market raises competitive fears, given its innovative capabilities and resources [2][3] - Zillow's annual sales peaked at $8.14 billion in 2021 but have since declined, while Alphabet continues to reach new revenue highs [4] Financial Performance - Zillow's sales are projected to rise by 15% this year and an additional 14% in fiscal 2026, reaching $2.94 billion [5] - Zillow's earnings per share (EPS) are expected to increase by 21% in FY25 to $1.67 and by 31% in FY26 to $2.19 [9][10] - Alphabet's EPS is projected to grow by 31% this year and by 4% in FY26 to $10.95, reflecting a positive trend in earnings estimates [10][11] Market Position and Outlook - The cyclicality of the housing market makes Alphabet a more attractive investment compared to Zillow, especially in terms of risk aversion [5] - Despite positive EPS revisions for Zillow, the stock remains under pressure, and both companies currently hold a Zacks Rank 3 (Hold) [12]