Zillow Drops as Profit View Misses on Legal, Ad Costs

Zillow Group Inc. shares dropped as much as 9% in post-market trading on Wednesday after the company forecast second-quarter profit that missed Wall Street expectations, citing legal and advertising expenses and a flat housing market.

The online real estate marketplace sees second-quarter adjusted earnings before interest, taxes, depreciation and amortization in a range of $150 million to $165 million, missing the average analyst estimate of $191 million. It forecast revenue of $750 million to $765 million, with the midpoint below the consensus of $761.1 million.