During the pandemic, millions of Americans became obsessed with checking their home values on Zillow. Investors who owned Zillow Group Inc. (NASDAQ: ZG) shares saw profits soar, but the stock plummeted in late 2021 due to macro changes and internal mistakes, like the failed iBuying program, leading to a $422 million loss.

Despite Zillow’s struggles, recent technical signals suggest a strengthening uptrend for ZG shares. A Golden Cross formed on the daily chart, indicating potential bullish momentum. While the stock experienced a sharp drawdown in Q1, it has rebounded nearly 20% in the last three months, with increasing volume and positive RSI trends.

Zillow is working to recover from the Zillow Offers disaster by expanding its reach through partnerships and innovative features. A recent partnership with Redfin has already shown promise, with Q2 2025 revenue reaching $655 million, a 15% YoY increase. Despite missing earnings estimates, Zillow’s revenue growth from rentals, driven by the Redfin alliance, is encouraging.

Following a strong Q2 report, Zillow’s stock has seen positive analyst sentiment, with 10 firms raising their price targets. The consensus price estimate of $85.62 suggests a 7% upside potential from current prices. With fundamental improvements and strategic partnerships, Zillow is on the path to recovery and growth in the real estate market.

Read more at Nasdaq: Zillow Group Approaching Key Technical Levels: Is It Time to Buy?