Zillow Group Inc (Z) (ZG) is getting hammered Monday, and it's not hard to see why. Over the weekend, social media lit up with screenshots showing Alphabet Inc (GOOG) (GOOGL) testing something that could fundamentally disrupt Zillow's business model: real estate listings appearing directly in Google search results.
What's Actually Happening
Global real estate tech strategist Mike DelPrete dropped a blog post Friday laying out what he found. When people search for "homes for sale" in certain areas, Google is now showing complete property listings with a "request a tour" button positioned right above where Zillow's results would normally appear.
We're not talking about basic info here. According to DelPrete, these listings include full property detail pages, agent contact options, and tour request capabilities. Everything you'd typically go to Zillow for, except now it's just sitting there in your Google results.
"This appears to be a test, live in a limited number of markets and only on mobile," DelPrete noted in his analysis.
As more users shared similar findings across X and other platforms throughout the weekend, the writing on the wall became pretty clear. Monday morning rolled around, and Zillow shares tanked more than 12%.
The Technical Picture Isn't Pretty Either
Beyond the Google threat, Zillow is showing some concerning technical signals. The stock is trading 9.7% below its 20-day simple moving average and 10.5% below its 50-day SMA. That's textbook bearish positioning.
The MACD indicator is sitting above its signal line, which technically suggests bullish momentum in the short term. But given how far below the moving averages the stock is trading, that's cold comfort.
The RSI comes in at 53.77, landing in neutral territory. That means the stock isn't screaming oversold or overbought right now, but traders should watch for momentum shifts that could push it either direction.
Key levels to watch: support sits at $64.50, with resistance at $74.50. A break below support could trigger another leg down, while clearing resistance might signal buyers are stepping back in.
Zooming out to the 12-month view doesn't make things look better. Zillow is down nearly 20% over that stretch, reflecting a longer-term bearish trend that predates Monday's Google-induced selloff.
Price Action: Zillow shares were trading down 12.39% at $65.45 at the time of publication Monday.