Zillow (NASDAQ: Z) saw its stock plummet 5.01% during Wednesday's trading session, continuing a downward trend that has plagued the company since its Q4 earnings report. The leading U.S. online real estate marketplace has been caught in a broader selloff affecting the real estate services sector, with the industry facing challenges in the current economic climate.

According to recent earnings reports, Zillow reported revenues of $554 million in Q4, up 16.9% year-on-year and exceeding analysts' expectations by 1.1%. Despite this top-line beat, the company delivered mixed results overall. While Zillow impressed with a significant beat on adjusted operating income estimates, investors remain cautious about the company's outlook in a challenging real estate market.

The real estate services industry as a whole has been under pressure, with the 13 tracked stocks in the sector down an average of 22.5% since their latest earnings results. This broader industry trend, coupled with ongoing concerns about the impact of technology on traditional real estate services, has likely contributed to Zillow's recent stock performance. As the market continues to digest Q4 earnings and assess the potential effects of recent political and economic developments, including interest rate adjustments and potential policy changes following the recent presidential election, investors appear to be reevaluating their positions in real estate-related stocks like Zillow.