Zillow: Tide Shifting In Its Favor (Rating Upgrade)

Gary Alexander33.52K FollowersFollow5ShareSavePlay(9min)CommentsSummaryZillow is upgraded to buy, as recent legal and strategic developments signal a positive inflection point for the stock.Z benefits from Compass dropping its lawsuit, reinforcing Z's dominant position in real estate search and weakening traditional brokerage threats.Z trades at an attractive 11.4x FY26 EV/EBITDA, with a $1.25B buyback (13% of market cap) underscoring management's confidence.Risks remain from a slow housing market and Premier Agent dependence, but these are priced in and offset by legal wins and monetization potential. Richard Drury/DigitalVision via Getty Images In a volatile market, the best trait for any investor is to be agile. This is not a time for passive stock investing and hoping that a rising tide will lift all boats: the choppy macroeconomy andThis article was written byGary Alexander33.52K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have a beneficial long position in the shares of Z either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.