Zillow Stock In Focus After A Mizuho Downgrade, Trump Policy Noise On Mortgage Rates

• Mizuho said there has been increasing uncertainty regarding the market structure of the company's real estate listings distribution, the magnitude of its litigation, and the potential implications for Zillow's business.
• Trump said in a post on Truth Social that he was “giving special attention” to the housing market in the country and that he has instructed his representatives to buy $200 billion in mortgage bonds.
• The real estate marketplace company’s ZG stock has garnered a 4.5% jump in the last four sessions of this week.

Zillow Group had seen its shares fall by over 3% last year, but heading into 2026, it has seen four straight sessions of gains so far. However, a Mizuho downgrade and U.S. President Donald Trump’s comments on driving mortgage rates have put the stock in a mixed view for investors.

The stock has garnered a 4.5% jump in the last four sessions of this week and could witness Friday to add on to it, with shares already trading 2.4% higher in premarket trading.

The Mizuho Downgrade

On Thursday, Mizuho analyst Lloyd Walmsley downgraded Zillow Group to ‘neutral’ from ‘outperform’ and slashed the price target to $70 from $100. The current price target is a 2% upside to the company’s last closing price of $68.54.

Mizuho said there has been increasing uncertainty regarding the market structure of the company's real estate listings distribution, the magnitude of its litigation, and the potential implications for Zillow's business.

The firm added that even if changes to the industry structure prove modest, agent concerns about fiduciary duty “could put a chill” on Flex, which is core to the company's growth story.

Zillow Flex is a program by the company and is known to be exclusive and invite-only for agents and teams. Flex offers benefits such as high-intent, post-pay leads and dedicated support.

Trump And His Mortgage Stance

Recent years in the United States saw higher mortgage rates discourage buyers from investing in a house or real estate, as the increasing cost of living put focus on buying essentials and meeting day-to-day expenses.

Trump said in a post on Truth Social that he was “giving special attention” to the housing market in the country and that he has instructed his representatives to buy $200 billion in mortgage bonds to help lower mortgage rates and monthly payments, making the cost of owning a home more affordable.

“It is one of my many steps in restoring Affordability, something that the Biden Administration absolutely destroyed,” Trump added.

What Is Retail Thinking?

Retail sentiment on Z stock jumped to ‘bullish’ sentiment from ‘neutral’ a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits.

Z stock, the company’s class C shares, has fallen nearly 2%, while ZG stock, its class A shares, has gained marginally over the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: LUNR Stock’s New Year Thrust Is Being Put To The Test By A Wall Street Downgrade — Retail Watches Cautiously

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