Just saw Zillow stock got hammered today - down like 17% after they reported earnings. Which is wild because their rental and mortgage businesses are actually crushing it. Q4 revenue jumped 18% year over year, rentals up 45%, mortgages up 39%. The company's adjusted EBITDA climbed 33% to $149 million. So the fundamentals look pretty solid.

But here's the thing - they just guided lower for Q1 2026. Wall Street was expecting adjusted EBITDA around $184 million, and Zillow is saying $160-175 million instead. The reason? Legal expenses from ongoing lawsuits are going to cut into their margins by about 2 percentage points. Management says they're confident in their positions and don't expect material impact long-term, but investors clearly didn't want to hear that today.

It's one of those situations where the actual business is doing well but forward guidance spooked people. The market's already pricing in the legal headwinds. Interesting to watch how this plays out over the next quarter.