Please ensure Javascript is enabled for purposes of website accessibility

Why Zillow Group Stock Rose 22% in February

By Demitri Kalogeropoulos - Mar 4, 2021 at 9:16AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors were happy with its latest earnings report.

What happened

Zillow Group (Z -10.69%) (ZG -11.05%) shareholders outperformed a rising market last month. Shares rose 22% in February compared to a 2.6% gain in the S&P 500, according to data provided by S&P Global Market Intelligence.

The rally added to gains for the real estate marketing platform, which has risen more than 200% since last March.

A couple shopping for new appliances.

Image source: Getty Images.

So what

Investors cheered Zillow's fourth-quarter results that on Feb. 10 revealed strong operating trends. Sales surpassed management's forecast as home shoppers flocked to its tech platform. Zillow's traffic touched 2.2 billion visits in Q4, up 27% from the prior year. "[Our] strong results reflected exemplary execution," CEO Rich Barton said in a press release, "and continued growth during the scary roller-coaster ride that was 2020."

Now what

The housing market will cool off at some point, but the relative lack of supply in many areas suggests Zillow will continue being a valued tool for connecting home shoppers to real estate agents. And, while it's not clear how profitable the company will be once industry conditions return to normal, it's an unqualified positive for the business that it is expanding its reach to more shoppers and establishing complementary services like mortgages.  

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Zillow Group, Inc. Stock Quote
Zillow Group, Inc.
$36.94 (-10.69%) $-4.42
Zillow Group, Inc. Stock Quote
Zillow Group, Inc.
$36.40 (-11.05%) $-4.52

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.