Shares of Zillow Group <\/strong>(NASDAQ: ZG)<\/span>(NASDAQ: Z)<\/span> sank on Wednesday after the real estate marketplace said legal costs would be a drag on its earnings in 2026.<\/p>\n By the close of trading, Zillow’s stock price was down roughly 17%.<\/p>\n Where to invest $1,000 right now?<\/strong> Our analyst team just revealed what they believe are the 10 best stocks<\/strong> to buy right now, when you join Stock Advisor.\u00a0See the stocks \u00bb<\/strong><\/span><\/em><\/p>\n Zillow’s revenue rose 18% year over year to $654 million in the fourth quarter. The gains were fueled by a 45% jump in the company’s rental revenue, to $168 million, and a 39% increase in mortgage revenue to $57 million.<\/p>\n “Consumers are increasingly choosing Zillow to help them move from discovery to transacting,” CEO Jeremy Wacksman and CFO Jeremy Hofmann said in a letter to shareholders.<\/p>\n Zillow’s profitability also improved. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 33% to $149 million.<\/p>\n Investors, however, appeared to focus more on Zillow’s guidance. Management expects revenue of $700 million to $710 million in the first quarter, with adjusted EBITDA of $160 million to $175 million. That was below Wall Street’s expectations, which had called for adjusted EBITDA of about $184 million.<\/p>\n Zillow said legal expenses related to several ongoing lawsuits are likely to reduce its adjusted EBITDA margin by 2 percentage points in the first quarter.<\/p>\n “We are confident in our positions and approach, and we do not expect these matters to have a material impact on our financial position or long-term strategy,” Wacksman and Hofmann said.<\/p>\n Before you buy stock in Zillow Group, consider this:<\/p>\n The Motley Fool Stock Advisor<\/em> analyst team just identified what they believe are the\u00a010 best stocks<\/strong> for investors to buy now\u2026 and Zillow Group wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix<\/strong> made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $443,353<\/strong>!* Or when Nvidia<\/strong> made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,155,789<\/strong>!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s<\/em> total average return is 920% \u2014 a market-crushing outperformance compared to 196% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor<\/em>, and join an investing community built by individual investors for individual investors.<\/span><\/strong><\/span><\/p>\n<\/p><\/div>\n<\/div>\n<\/div>