Zillow’s revenue falls nearly 90%, but the stock is still headed higher after earnings — here’s why

Zillow Group Inc.’s revenue was slashed by nearly 90% in the first quarter of 2023, and that was on purpose.

Zillow Z ZG lapped the biggest quarter of the fire sale that erupted from the abrupt end to its home-flipping business with an earnings report Wednesday, which is why its sales total showed such a huge year-over-year decline. The $469 million in first-quarter net sales that Zillow reported, while down from $4.26 billion a year ago, easily topped FactSet’s average analyst estimate of $425 million in an uncertain residential…