Just saw Zillow's stock getting hammered today - down like 17% after their earnings call. What's wild is their actual business looks solid. Revenue jumped 18% YoY, rental business is crushing it with a 45% bump to $168M, and mortgage side grew 39%. Even their profitability metrics improved - adjusted EBITDA up 33%.

But here's where it gets interesting: management lowered guidance for Q1. They're expecting adjusted EBITDA around $160-175M when Wall Street was looking for closer to $184M. The culprit? Legal expenses. They're saying lawsuits could drag margins down by 2 percentage points. Apparently there's a bunch of ongoing litigation they're dealing with.

So basically investors saw solid execution on the core business, but then got spooked by the guidance miss and legal headwinds. That's a pretty sharp selloff when you look at it - the fundamentals seem okay but the uncertainty around legal costs is making people nervous about what 2026 actually looks like. Curious if this bounces back or if there's more to worry about here.