Z Forecast



Bearish<—>Bullish



80% Confidence




Bullish Case: Zillow's initiatives like the 1% down payment program and tech innovations can drive revenue amid improving housing market conditions.




Bearish Case: Persistently high mortgage rates and affordability issues constrain real estate demand, potentially stunting Zillow's growth despite strategic efforts.




Potential Outcomes: 60% chance favorable initiatives boost sales; 30% extended high rates suppress growth; 10% negative equity risks if price drops continue.




Trading Oracle: Consider a bullish debit spread, buying $80 call and selling $85 call maturing in February. Market-implied volatility trends downward, offering moderate short-term upside. Options activity supports a risk-managed strategy. Monitor near-term catalyst events.



January 23, 2025


Zillow Forecast

Z        Zillow











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