Zillow Group Inc. shares fell 8.47% Monday, closing at $68.38, after news emerged that Google is testing a new real estate advertising format that could compete directly with the online property platform’s services.
The decline erased roughly $1.6 billion from Zillow’s market capitalization, which now stands at about $16.26 billion. Zillow was not alone in the downturn. CoStar Group, owner of Homes.com, dropped 6.4%, while Rocket, which acquired Redfin earlier this year, fell 2.8%.
Google’s new format
Google confirmed it is running an experiment in partnership with ComeHome by HouseCanary that displays property listings alongside existing real estate agent ads in search results. The test, currently limited to select markets including Denver, Los Angeles, Miami, and Houston, works only on mobile devices.
Real estate tech strategist Mike DelPrete first reported the development Friday on his blog, posting screenshots of the new format. The listings allow users to view property details, request tours, and contact agents directly through search results—features similar to those offered on Zillow’s platform.