:max_bytes(150000):strip_icc()/GettyImages-1569123406-0b125ec965624b029e52858117a941e8.jpg "Google Is Testing New Home Listing Features in Search. Why That Could Be Bad News for Zillow")
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Key Takeaways
- Google has started testing new home ad features in its search results.
- Shares of Zillow and other home listing sites tumbled Monday amid worries Google’s new features could hurt their businesses.
Google is getting deeper into the home listings game, in what could mean more competition for Zillow and other real estate sites.
Shares of Zillow Group (Z), which claims to be the most visited real estate website in the U.S., tumbled over 10% Monday after Alphabet’s (GOOGL) Google began testing full home ads in its search results, including links to request tours and agent contacts.
Other companies with home listing sites such as CoStar (CSGP) and Rocket Companies (RKT) also saw their stocks lose ground. (Read our daily markets coverage here.)
Why This News Is Significant
Monday’s drop in shares of Zillow and other companies with home listing sites underscores worries Google’s new home ad features in search could present a competitive challenge.
Goldman Sachs analysts told clients Monday that while they “don’t expect a direct near-term impact on Zillow’s business, given that most of Zillow’s traffic is direct (e.g., Zillow.com, StreetEasy.com, mobile apps) and Google’s new product is currently limited to select markets and mobile browsers, we view this development as a long-term risk for real estate portals like Zillow.”
With Monday’s losses, shares of Zillow are down about 8% for the year, while CoStar shares have lost about 12%. Rocket Companies shares have lost over 60% of their value in 2025.
