Zillow Stock Is Tumbling To Start The Week: What's Sparking The Sell-Off?

Zillow Group Inc (NASDAQ:Z) (NASDAQ:ZG) shares are facing heavy selling pressure Monday amid reports that Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) is testing real estate listings in search results.

• Zillow Group stock is among today’s weakest performers. What’s behind Z decline?

What To Know: Several posts across social media over the weekend highlighted new for sale listings for homes showing up in Google search results. Global real estate tech strategist Mike DelPrete pointed to several findings in a blog post on Friday.

DelPrete shared several screenshots of Google displaying home listings with a “request a tour” button above Zillow listings after searching “homes for sale” in certain areas.

According to the real estate blogger, the listings include complete property detail pages, as well as options to contact agents and request tours of the homes.

“This appears to be a test, live in a limited number of markets and only on mobile,” DelPrete wrote in the post.

As more and more people share similar findings across X and other social platforms, Zillow shares are selling off, last down more than 12%, according to Benzinga Pro.

Zillow is currently showing a bearish technical setup, trading significantly below its key moving averages. The stock is positioned 9.7% below its 20-day SMA and 10.5% below its 50-day SMA. MACD is above its signal line, indicating bullish momentum in the short term. However, this needs to be taken with caution given the overall bearish trend indicated by the moving averages.

The RSI is at 53.77, which is considered neutral territory. This suggests that while the stock isn’t overbought or oversold, traders should watch for any shifts that could indicate a change in momentum.

Key support is at $64.50 and resistance at $74.50. If the stock tests the support level, a break below could signal further declines, while a move above resistance may suggest a potential reversal.

Looking at the 12-month performance, Zillow is down nearly 20%, reflecting a longer-term bearish trend. This decline suggests that traders should remain cautious and consider the overall market sentiment before making any moves.

Z Price Action: Zillow shares were down 12.39% at $65.45 at the time of publication on Monday, according to Benzinga Pro.

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