Rocket Companies Stock Slips Thursday On Zillow Sell-Off, AI Fears

Rocket Companies Inc (NYSE:RKT) is trading lower Thursday afternoon as investors continue to de-risk housing-exposed names following a sharp, negative reaction to Zillow Group Inc’s (NASDAQ:ZG) (NASDAQ:Z) latest quarterly update and a broader wave of selling across real-estate intermediaries.

Here’s what investors need to know.

• Rocket Companies stock is among today’s weakest performers. What’s pressuring RKT stock?

Why Rocket Companies Stock Is Down Today

RKT is getting hit by sympathy selling tied to sentiment Thursday, as opposed to company-specific headlines. When the market turns cautious on housing demand indicators, mortgage originators often move with the group because their volumes and margins are ultimately tied to homebuying activity and rate-driven refinance cycles.

Zillow's Earnings Reaction Is Spilling Over

Zillow on Tuesday posted fourth-quarter revenue of $654 million, ahead of expectations, but adjusted EPS of 39 cents came in a penny light. Despite 18% year-over-year revenue growth and first-quarter sales guidance of $700 million to $710 million that topped estimates, Zillow shares still dropped about 19% after the release.

Traders often treat Zillow as a barometer for U.S. housing activity, so a sell-the-news response can quickly weigh on names like Rocket by raising concerns about origination volumes, refinance demand and gain-on-sale margins.

AI "Scare Trade" Adds Another Layer Of Pressure

Real-estate stocks have also been rattled by investor anxiety that new AI tools could disrupt fee-heavy, labor-intensive business models across the transaction ecosystem. That narrative has pressured online housing platforms after Zillow's plunge, keeping sector sentiment fragile and risk premiums elevated.

Rocket Companies Business Overview

Rocket Companies is a financial services company that was originally founded as Rock Financial in 1985 and is currently based in Detroit. The company offers a wide array of services and products but is best known for its Rocket Mortgage business, which has rapidly gained market share in recent years.

The company’s mortgage lending operations are split between its direct-to-consumer lending, allowing borrowers to access loans through its mobile app or website, and its partner network, where mortgage brokers utilize Rocket’s origination process.

Rocket Earnings Outlook And Valuation

The countdown is on: Rocket Companies is set to report earnings on Feb. 26.

• EPS Estimate: 8 cents (Up from 4 cents YoY)
• Revenue Estimate: $2.28 billion (Up from $1.19 billion YoY)
• Valuation: P/E of 265.6x (Indicates premium valuation)

Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $19.47. Recent analyst moves include:

• JP Morgan: Neutral (Target $24.00) (Jan. 12)
• Barclays: Equal-Weight (Raises Target to $22.00) (Jan. 6)
• Jefferies: Initiated with Buy (Target $25.00) (Dec. 19, 2025)

Valuation Insight: While the stock trades at a premium P/E multiple, the consensus and rising estimates suggest analysts view the growth prospects as justification for the 11% upside to analyst targets.

Technical Setup Shows Mixed Momentum

Rocket Companies (RKT) shares have traded between a 52-week low of $11.11 and a high of $23.44, with the stock climbing steadily through late 2025 before pulling back into February.

While the price remains above its rising 200-day moving average, it has recently slipped below shorter-term averages, signaling near-term momentum pressure despite a still constructive longer-term trend.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Rocket Companies, highlighting its strengths and weaknesses compared to the broader market:

• Quality: 2.81 — The stock’s quality score indicates potential concerns regarding its fundamentals.
• Momentum: 76.09 — The stock is showing strong momentum compared to the broader market.

The Verdict: Rocket Companies’ Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the strong momentum score suggests positive trends, the low quality score warns that the stock may face challenges ahead—investors should remain cautious.

RKT Shares Slide Thursday

RKT Price Action: Rocket Companies shares were down 5.49% at $17.62 at the time of publication on Thursday, according to Benzinga Pro data.