Analysts at KeyBanc said that Zillow's stock price fell on Monday after Alphabet's Google said it was testing to put real estate listings directly into its search results, but concerns that Google would bypass Zillow were excessive. Worryingly, Google will prioritize showing its listings in search results, thereby reducing Zillow's visibility and traffic. However, only a small portion of Zillow's traffic comes from search engine marketing, and managing real estate listings is highly complex and strictly regulated, which limits the risk of disintermediation. These analysts said Zillow's share price is likely to follow a similar trajectory to online travel stocks, which fell last month after Google announced the launch of AI-powered travel tools, but have since rebounded.

Analysts at KeyBanc said that Zillow's stock price fell on Monday after Alphabet's Google said it was testing to put real estate listings directly into its search results, but concerns that Google would bypass Zillow were excessive. Worryingly, Google will prioritize showing its listings in search results, thereby reducing Zillow's visibility and traffic. However, only a small portion of Zillow's traffic comes from search engine marketing, and managing real estate listings is highly complex and strictly regulated, which limits the risk of disintermediation. These analysts said Zillow's share price is likely to follow a similar trajectory to online travel stocks, which fell last month after Google announced the launch of AI-powered travel tools, but have since rebounded.