Why Zillow Stock Dropped Today

By Joe Tenebruso – Dec 15, 2025 at 7:00PM ESTKey PointsThere are certain companies you don’t want as competitors.Google is one of them.These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: ZZillow GroupMarket Cap$18BToday's Changeangle-down(-8.47%) $6.33Current Price$68.38Price as of December 15, 2025 at 4:00 PM ETA formidable force is encroaching on the home listing leader's turf.Shares of Zillow Group (ZG 7.90%) (Z 8.47%) fell on Monday following reports that Alphabet was entering the online real estate arena. By the close of trading, Zillow's stock price was down roughly 8% after falling nearly 13% earlier in the day. Image source: Getty Images. A new competitive threat Google is reportedly adding home sale listings directly to its search results in select markets. The tech titan appears to be testing demand for the new features, which include property details and the ability to contact a real estate agent and request home tours. These services also happen to be some of the key features of Zillow's digital property platform.Advertisement ExpandNASDAQ: ZZillow GroupToday's Change(-8.47%) $-6.33Current Price$68.38Key Data PointsMarket Cap$18BDay's Range$65.07 - $69.7152wk Range$57.51 - $93.88Volume11MAvg Vol2.8MGross Margin74.87% Near-term concerns, long-term worries The short-term impact on Zillow's business is likely to be muted, as most of its web traffic is direct rather than search-derived. Yet therein lies Zillow's dilemma. If Google rolls out its new real estate informational services to more markets and people get used to seeing this data in their search results, they may have less incentive to visit Zillow's sites. And if Zillow is forced to pay ad fees to show its listings in Google's search results, its marketing costs could skyrocket. Neither option is appealing to Zillow's investors, and many of them decided to sell their shares today.About the AuthorJoe Tenebruso is a contributing Motley Fool stock market analyst. Previously, Joe was an investment analyst for Stock Advisor, Income Investor, and Crypto Society, as well as several other market-beating investing services. He graduated summa cum laude from Rutgers University with a Bachelor of Science in Finance.tmfguardianX@Tier1InvestorRead NextFeb 12, 2025 •By Rich SmithWhy Zillow Stock Crashed an Unlucky 13% TodayNov 8, 2024 •By Chris NeigerWhy Zillow Stock Popped 23% This WeekMar 15, 2024 •By Steve SymingtonWhy Zillow Group Stock Dropped TodayMay 4, 2023 •By Rick MunarrizDoes Zillow Stock Finally Have Curb Appeal?Feb 21, 2023 •By Rich DupreyIs Zillow Stock a Buy?Jan 15, 2023 •By Travis Hoium6 Stocks With Lots of Cash