Redfin Corp is a technology-driven real estate brokerage that aims to revolutionize the way people buy and sell homes
By leveraging sophisticated online tools and a user-friendly platform, Redfin provides comprehensive real estate services that include property listings, home searches, and market insights. The company employs a team of real estate agents who utilize data analytics to streamline the home buying and selling process, helping clients to make informed decisions. Additionally, Redfin offers unique features such as virtual tours and innovative pricing strategies to enhance the customer experience in an increasingly digital market.
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the real estate services industry, including The Real Brokerage (NASDAQREAX) and its peers.
What a fantastic six months it’s been for Redfin. Shares of the company have skyrocketed 40.8%, hitting $8.35. This run-up might have investors contemplating their next move.
What has Wall Street been buzzing about this week? Here are the top 5 buy calls and the top 5 sell calls made by Wall Street's best analysts during the trading week of Nov. 18-22, 2024.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how real estate services stocks fared in Q3, starting with Redfin (NASDAQRDFN).
Shares of real estate technology company Redfin (NASDAQRDFN)
fell 5.7% in the afternoon session after Goldman Sachs analyst Michael Ng downgraded the stock's rating from Neutral to Sell. The analyst called out a series of concerns, including the downward pressure that a "lack of home affordability" could impose on the housing market's recovery. Other issues raised include RDFN's reduced take rate due to increased pressure from agent commissions and competition in the advertising business from Zillow.
Risk sentiment edged higher on Monday, rebounding after two consecutive losing sessions and the worst week for the U.S. stock market since early September, as pressures from dollar and Treasury yields faded.
Goldman Sachs downgrades Redfin Corp. from Neutral to Sell due to competition, commission pressures, and affordability challenges in U.S. housing market.
Shares of real estate technology company Redfin (NASDAQRDFN)
fell 27.6% in the afternoon session after the company reported weak third-quarter earnings, which fell short of Wall Street's expectations. The number of brokerage transactions missed, and EBITDA fell short of Wall Street's estimates. The challenging operating environment, characterized by fluctuating mortgage rates and aggressive competitor ad spending, further weakened the performance.
As a result, EBITDA guidance came in below expectations, throwing some cold water on the solid revenue guide. Overall, this was a weaker quarter.
Real estate technology company Redfin (NASDAQRDFN) met Wall Street’s revenue expectations in Q3 CY2024, with sales up 3.4% year on year to $278 million. On the other hand, next quarter’s outlook exceeded expectations with revenue guided to $242 million at the midpoint, or 1.5% above analysts’ estimates. Its GAAP loss of $0.28 per share was 38.2% below analysts’ consensus estimates.
