Zillow Stock Rockets 22% Following Strong Earnings: Retail Stays Exuberant

Shares of real-estate marketplace company Zillow Group ($Z) soared over 22% on Thursday after its third quarter results came in better than Wall Street expectations.

Revenue rose 17% year-over-year (YoY) to $581 million, higher than the midpoint of the company’s outlook range by $28 million and topping an analyst estimate of $555.4 million. Earnings per share came in at $0.35 versus an estimate of $0.26.

Residential revenue rose 12% YoY to $405 million, driven by continued conversion improvements as more buyers and sellers transacted with Zillow agent partners.

Rentals revenue rose 24% YoY to $123 million, led by multifamily revenue growing 38% in Q3. Mortgage revenue grew 63% YoY to $39 million, mainly due to an 80% increase in purchase loan origination volume to $812 million.

CEO Jeremy Wacksman said the company continues to invest in tech solutions to build the integrated transaction experience.

“These investments give Zillow an advantage as we connect high-intent movers with high-performing agents, driving adoption of our services and contributing to increased revenue,” he said.

During the quarter, traffic to Zillow Group’s mobile apps and sites was 233 million average monthly unique users, up 1% YoY. Visits stood at 2.4 billion, up 3% YoY.

For the fourth quarter, the company expects revenue at $525 million - $540 million. Residential revenue is expected to come in at $364 million - $374 million.

Following the earnings announcement, retail sentiment on Stocktwits continued to trend in the ‘extremely bullish’ territory (94/100), accompanied by high retail chatter.

Retail investors on Stocktwits expressed optimism on the stock.

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