Zillow Group (NASDAQ:Z) (NASDAQ:ZG) shareholders trailed the market by a wide margin last month. Their stock dropped 23% in March compared to a 4.2% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.
The drop pushed shares to near flat for the year but the real estate selling platform stock has still more than tripled over the last 12 months.
That earlier rally was likely the cause of some of the selling pressure on Zillow last month, especially when many of its peers were part of a wider tech stock sell-off. Other industry-specific factors contributed to Zillow’s March decline, including rising interest rates and a poorly received earnings report from peer Opendoor Technologies. Opendoor in early March revealed slowing growth due to the declining supply of homes in its inventory.
Zillow’s broader selling platform should allow it to continue capitalizing on its popular home shopping app, which last quarter notched a 27% traffic spike. But the stock might still be subject to extra volatility ahead of its next earnings report, likely due out in the first week of May.
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