Zillow’s stock (ZG) dropped 8% after reports surfaced of Google (GOOGL) testing real estate listings in search results. Google displayed home listings with property details and contact options in limited markets, causing concerns for Zillow’s dominance in the real estate market.

Alphabet’s potential entry into the real estate search market poses a threat to Zillow due to its innovation and resources. Despite no official announcement, Google’s stock (GOOGL) remained relatively unaffected, suggesting investors are not overly concerned about this development impacting Zillow.

Zillow’s sales have fluctuated due to the cyclical nature of the housing market, but a projected 15% increase in sales for this year and a further 14% in 2026 show signs of recovery. Meanwhile, Alphabet’s EPS estimates have increased, reflecting a positive outlook on profitability compared to Zillow.

While Zillow’s EPS revisions show promise, Alphabet’s stock (GOOGL) has already seen significant growth this year. The slight decline in Zillow’s stock price and stagnant EPS revisions make Alphabet a more appealing option for investors seeking lower risk and higher potential returns in the tech sector.

Read more at Nasdaq: Should Investors Ditch Zillow’s Stock and Buy Alphabet’s?