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REA Group shares dip as Google trials direct homes-for-sale ads
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REA Group shares dip as Google trials direct homes-for-sale ads

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REA Group (ASX:REA) shares fell on Dec. 15 as global online real estate stocks reacted to Alphabet's Google testing a new search ad format that places homes-for-sale listings directly at the top of search results.

US-listed companies also saw declines, including Zillow Group (-10.8%), CoStar Group (-7.8%), and Rocket Companies (-4.7%).

REA Group slipped 2.85% to $183.70 by 12:47pm AEDT.

Google’s trial allows users to view property details, contact agents, and request home tours directly from search results, bypassing third-party real estate sites.

Despite the market jitters, Citi analysts said the impact on REA Group is likely limited.

They noted that around 80% of REA's traffic comes directly to its site, reducing its exposure to changes in Google's search algorithms or ad presentation.

At the time of reporting, REA Group's share price was $183.72.

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