Zillow's 0.64% Stock Drop Contrasts Resilient Q2 Earnings and 300th Trading Volume Rank

On August 7, 2025, Zillow Group (Z) traded down 0.64% with a trading volume of $390 million, ranking 300th in market activity. The stock’s muted performance contrasts with its recent quarterly results, which showed resilience amid a sluggish housing market.

Zillow reported a net income of $2 million for Q2 2025, reversing a $17 million net loss in the prior-year period. Revenue rose 15% year-over-year to $655 million, exceeding expectations. Adjusted EBITDA reached $155 million, aligning with forecasts. The growth was driven by a 41% surge in mortgage revenue to $48 million and a 36% increase in rental revenue to $159 million, supported by a 56% rise in multifamily property listings.

Operating expenses climbed 10% to $666 million, partly attributed to lead acquisition costs from its Redfin partnership. Under the agreement, Zillow paid $100 million to syndicate multifamily listings on Redfin platforms. The company also faced legal challenges, including lawsuits from Compass over listing policies and CoStar over alleged copyright violations in its rental listings.

Zillow’s liquidity position weakened slightly, with cash reserves falling to $1.2 billion from $1.6 billion, due to $419 million in convertible note settlements and $150 million in share repurchases. Management emphasized continued focus on innovation and cost discipline, projecting low-to-mid teens revenue growth and positive GAAP net income for 2025.

A backtest of a strategy buying the top 500 stocks by daily trading volume and holding for one day showed a 166.71% return from 2022 to present, outperforming the benchmark by 137.53%. This highlights the potential of liquidity concentration in volatile markets, though such strategies carry inherent risks.