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Stronger April housing data may boost Zillow's Q2 revenue outlook, says Jefferies.

Market News
20 May 2026
Proactive Investors
View Source
Bullish
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Jefferies analysts highlight stronger-than-expected April housing data, with pending home sales up 3.3% year-over-year and transaction values rising 2.8%. They project nearly 6% growth in housing transaction value for Q2, exceeding Zillow's own flat outlook, potentially signaling higher revenue for the company. However, risks remain from limited inventory and high mortgage rates, which could impact affordability and slow demand. Despite these challenges, improving rental market conditions may also support Zillow's rental revenue segment. Zillow shares have declined about 47% year-to-date amid legal and macroeconomic concerns.

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