2 Reasons Why Zillow Stock (ZG) Surged Today, 3/13/2026

Zillow Z +4.00% ▲ ZG +3.28% ▲ shares gained over 4% on Friday’s regular trading session, driven by positive U.S. housing starts data and JPMorgan analyst Dae Lee’s bullish comments, calling the stock’s recent decline an “overreaction” and a buying opportunity.

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JPMorgan Sees a Buying Opportunity

In a research note, Lee defended the company, calling the recent 25% post‑earnings pullback an overreaction. He said it has created an attractive entry point for long‑term investors. Also, the analyst argued that fears around AI disruption, litigation, regulatory pressure, and changes to listing distribution models have been overstated by the market.

Lee believes Zillow’s core fundamentals remain strong despite the wave of negative sentiment that has pushed the stock to fresh 52‑week lows.

Finally, Lee pointed to Zillow’s upcoming March 24 AI summit as a potential catalyst. He expects the company to use the event to show how its vertical integration, proprietary data, and closed‑loop workflows give it a strong advantage over horizontal AI models.

Strong Housing Data

Another reason for upside in Zillow stock is new positive economic data, which showed that housing starts surged 7.2% to an annualized rate of 1.49 million units, the highest level in a year.

The pickup in construction expands the future housing supply pipeline, which directly benefits Zillow’s Premier Agent and Rentals businesses by increasing the volume of listings and rental inventory flowing onto the platform.

Is ZG a Good Stock to Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on ZG stock based on 11 Buys and 10 Holds assigned in the past three months. Further, the average Zillow price target of $73.86 per share implies 75.27% upside potential.

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