Dear Reader,
Could this strange machine trigger a paradigm-shift that changes society forever?
Some of the world's biggest sovereign wealth funds, banks, hedge funds, and pensions seem to think so!
On August 28, the startup behind this device announced that they raised $863 million from Stanley Druckenmiller, Nvidia, Google, and others.
Vinod Khosla - an early investor in Amazon, Google, and OpenAI - calls it "one of the most impactful and ambitious projects I've seen in my career."
It's a technology I call "Helios" - and I believe it's about to spark a global investment megatrend... with one tiny Massachusetts firm at the center of it all.
Click here to get all the details...
Regards,
Whitney Tilson
Editor, Stansberry Research
Zillow Group Approaching Key Technical Levels: Is It Time to Buy?
Written by Dan Schmidt. Published 8/23/2025.
Key Points
- Zillow Group investors have had a tumultuous experience since the pandemic, but the stock's recovery is beginning to gain momentum.
- New partnerships and features have increased revenue as the company finally shakes off the iBuying fiasco of 2021.
- The stock is approaching a key technical level, and signals indicate upward momentum is gaining strength.
Are you a recovering Zillow investor? You're not alone. Millions of Americans became hooked on the intuitive real estate app during the COVID-19 pandemic. With interest rates near zero and housing prices surging—and with baseball postponed—checking your home's value became a national pastime.
If you owned shares of Zillow Group Inc. (NASDAQ: ZG) during that rally, you might have pocketed enough gains to buy a new condo. But shifting macro conditions and some costly missteps sent the stock tumbling in late 2021. Zillow is still down nearly 50% from its 2021 high, yet recent momentum suggests its comeback may be sustainable.
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Is it time to finally buy Zillow?
Not Just Rates: Why Zillow Fell Harder Than Homebuilders
During the pandemic, Zillow's shares acted like a meme stock, swinging from $18 to $212 to $26 in under two years. While high rates cooled the housing market, homebuilder and REIT stocks outperformed Zillow after COVID.
Macro headwinds played a role, but Zillow's own miscalculations deserve most of the blame.
In 2018, Zillow launched an iBuying program called Zillow Offers, using a proprietary algorithm to identify undervalued homes to renovate and flip. Unfortunately, the model repeatedly overpaid—failing to account for local market shifts, repair costs and competition from motivated buyers. Efforts to scale the program only ran into supply and labor shortages, delaying renovations and dragging properties off the market.
By Q3 2021, the bottom fell out. A dismal earnings report revealed a $422 million loss from Zillow Offers—an average loss of $80,000 per home sold. In November 2021, Zillow shut down the program and cut 2,000 jobs. The implosion of Zillow Offers dashed investor confidence, and ZG shares couldn't hold their highs as pandemic stimulus faded. Yet fundamental and technical indicators are now turning more positive.
Technical Signals Highlight a Strengthening Uptrend
After a choppy start to 2025, Zillow's chart is flashing bullish signs. Earlier this month, a Golden Cross formed when the 50-day simple moving average (SMA) crossed above the 200-day SMA—a classic buy signal. The previous Golden Cross on ZG's chart preceded an 80% gain over six months.
Like many U.S. equities, Zillow endured a steep drop in Q1—exacerbated by reciprocal tariff threats in April. Still, the stock is up almost 20% over the past three months, approaching this year's high of $85.29 set in February. Trading volume is at its strongest since September 2024, and the Relative Strength Index (RSI) remains below the overbought threshold of 70. The long-term trend has been upward for over a year, and fundamentals are starting to catch up.
Earnings and Upgrades Provide Fundamental Tailwinds
Recovering from the Zillow Offers debacle has forced the company to pivot. Zillow is expanding partnerships and rolling out new features—like Enhanced Markets and AI-powered tools such as SkyTour and BuyAbility—to better connect buyers and sellers. Early results are promising, as seen in the Q2 2025 earnings report released on August 6.
Zillow partnered with Redfin in February to boost its rental offerings by integrating Redfin and its subsidiaries into Zillow's rental platforms, Trulia and HotPads. The benefits of this alliance are already apparent.
For Q2, Zillow reported $655 million in revenue, a 15% year-over-year increase that topped the $647 million consensus. It was Zillow's highest quarterly revenue since Q2 2021, driven by a 36% jump in rental revenue to $159 million—thanks in large part to a 56% increase in multifamily listings via Redfin.
Earnings per share came in at $0.40, slightly below the $0.44 estimate, but investors largely brushed off the miss, attributing it to higher marketing spend and strategic partnership investments. Cost of revenue rose to $166 million, though these expenses appear to be one-time investments rather than ongoing burdens.
The consensus analyst rating remains Hold, but 10 firms raised their price targets after the Q2 report. The new average target of $85.62 implies roughly 7% upside from current levels.
This email content is a sponsored email from Stansberry Research, a third-party advertiser of MarketBeat. Why did I receive this message?.
Dear Reader,
Could this strange machine trigger a paradigm-shift that changes society forever?
[link][/link]
Some of the world's biggest sovereign wealth funds, banks, hedge funds, and pensions seem to think so!
On August 28, the startup behind this device announced that they raised $863 million from Stanley Druckenmiller, Nvidia, Google, and others.
Vinod Khosla - an early investor in Amazon, Google, and OpenAI - calls it "one of the most impactful and ambitious projects I've seen in my career."
It's a technology I call "Helios" - and I believe it's about to spark a global investment megatrend... with one tiny Massachusetts firm at the center of it all.
[link]Click here to get all the details...[/link]
Regards,
[link][/link]
Whitney Tilson
Editor, Stansberry Research
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