RDFN - Redfin: It's Not Game Over Yet But The Outlook Is Cloudy (Rating Upgrade)
2024-05-13 14:41:53 ET
Summary
- Redfin's stock is down nearly 30% this year, while rival Compass has gained 10%.
- Redfin's new initiative, Redfin Next, is a cost-saving measure in a struggling real estate industry, but is unlikely to put the company back into a leadership position in real estate.
- Redfin's Q1 results showed a return to revenue growth and an improvement in market share, but it still lags behind Compass.
In my view, few industries have been as battered and bruised over the past few years than the real estate industry. Real estate faces a triple whammy of negative factors: high interest rates, very tight housing supply (where high cost of capital has also discouraged new builds), and the overhang of the recent NAR lawsuit that will ban real estate agencies from listing broker compensation on the MLS starting in July , widely projected to reduce agency fees overall....
Redfin: It's Not Game Over Yet, But The Outlook Is Cloudy (Rating Upgrade)