Zillow shares fall after Wells Fargo cuts its price target

what happened

Shares of online real estate marketplace Zillow fell 3.4% during the afternoon session after Wells Fargo reduced its price target to $31. Stockstory.org, citing Streetinsider, reported that analyst Alec Brondolo cut the target from $35 to $31 and maintained an Equal Weight rating. He cited a weaker macro backdrop for the lower estimates. Brondolo said the cuts were probably already anticipated, but difficult strategic developments made it hard to identify a floor for the valuation multiple.

Zillow shares ended the session at $28.69, down 4% from the previous close. The stock has recorded 23 moves of more than 5% over the past year, so the latest decline suggests investors viewed the news as meaningful without treating it as a fundamental change in their view of the business.

The shares are down 56.3% since the start of the year and trade 61.5% below their 52-week high of $74.58, reached in October 2025. Someone who invested $1,000 in Zillow five years ago would now have just $312.10.

why it matters

The target-price reduction highlights Wells Fargo’s concerns about the broader macroeconomic backdrop and Zillow’s strategic challenges. It adds pressure to a stock that has already fallen sharply this year, although stockstory.org said the market did not view the development as a fundamental reassessment of the company.

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