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].

Offerpad Solutions (OPAD -5.00%), a leading technology-enabled real estate platform best known for its instant home-buying (iBuying) Cash Offer service, reported its second quarter 2025 results on August 4, 2025. The most important news in the release was a significant shortfall in both revenue and earnings compared to market expectations, underpinned by declining home sales volumes and acquisition activity. Revenue (GAAP) was $160.3 million, well below the $174.4 million analyst estimate (GAAP) and marking ...