Zillow Stock Faces Major Downside, Says Short-Seller

Spruce Point predicts a 40%-60% drop due to legal challenges and business pressures.

Zillow stock price falls following a report by short-seller Spruce Point, which predicts a 40%-60% downside due to legal and business challenges.
Spruce Point criticizes Zillow's business model, highlighting a decline in web traffic and questioning the company's revenue and expense policies.
Antitrust lawsuits targeting broker commissions pose a significant threat to Zillow's business, potentially impacting its revenue sources.
Spruce Point also points to new competition from CoStar Group Inc.'s Homes.com, adding to the pressures on Zillow.
Despite these challenges, Zillow's stock has seen a 30% increase over the last 12 months, outperforming the US housing market.