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Shares of the tech-focused real estate startup Redfin (RDFN - Free Report) skyrocketed on Tuesday. A few factors, including a positive housing report, helped send the newly public company soaring once again.
A report was released on Tuesday that showed a rebound in homebuilder confidence. The National Association of Home Builders/Wells Fargo Housing Market Index climbed from 64 in July to 68 in August, the index’s highest level since May—50 and above is considered positive sentiment.
On top of the positivity from the U.S. housing market, Redfin is also slowly approaching the expiration date for its quiet period.
Redfin’s quiet period expiration is set for next Tuesday, Aug 22. A quiet period is the time after an IPO is priced—normally 25 days—during which the underwriters cannot talk or publish any research about the company.
Goldman Sachs (GS - Free Report) was one of the head underwriters for Redfin's IPO. If an investment bank with Goldman’s clout were to publish positive research, give Redfin strong coverage, or raise its price target, the firm could help lift Redfin’s stock price even higher next week.
There are also whispers that the online and app-based real estate company could start to monetize its app, most likely with ads, according to Seeking Alpha.
And fellow tech-focused real estate company Zillow (Z - Free Report) thinks that Redfin might be able to truly shake up the industry.
“Undoubtedly, one of Redfin’s goals is to obviate the buyer’s agent,” Zillow CEO Spencer Rascoff said on his company’s earnings call last week. “I think they have stated, quite publicly, that they aim to acquire more listings inventory in given markets, and then have no buyers’ agents on the other side of those listings. And that is a threat to organized real estate, and that’s one of the many reasons why brokerages are so concerned about Redfin.”
Shares of the Seattle-based company closed up 14.54% on Tuesday at $28.59 a share. Despite today’s big jump, the young company fell below its all-time closing high (also read: Tech-Based Real Estate Startup Redfin (RDFN - Free Report) Soars Again).
Redfin’s IPO offered only 9.2 million shares at $15 a share, which along with its relatively small market cap of $2.2 billion, can cause the company’s stock price to see massive one-day volatility.
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Real Estate Startup Redfin (RDFN) Keeps Soaring
Shares of the tech-focused real estate startup Redfin (RDFN - Free Report) skyrocketed on Tuesday. A few factors, including a positive housing report, helped send the newly public company soaring once again.
A report was released on Tuesday that showed a rebound in homebuilder confidence. The National Association of Home Builders/Wells Fargo Housing Market Index climbed from 64 in July to 68 in August, the index’s highest level since May—50 and above is considered positive sentiment.
On top of the positivity from the U.S. housing market, Redfin is also slowly approaching the expiration date for its quiet period.
Redfin’s quiet period expiration is set for next Tuesday, Aug 22. A quiet period is the time after an IPO is priced—normally 25 days—during which the underwriters cannot talk or publish any research about the company.
Goldman Sachs (GS - Free Report) was one of the head underwriters for Redfin's IPO. If an investment bank with Goldman’s clout were to publish positive research, give Redfin strong coverage, or raise its price target, the firm could help lift Redfin’s stock price even higher next week.
There are also whispers that the online and app-based real estate company could start to monetize its app, most likely with ads, according to Seeking Alpha.
And fellow tech-focused real estate company Zillow (Z - Free Report) thinks that Redfin might be able to truly shake up the industry.
“Undoubtedly, one of Redfin’s goals is to obviate the buyer’s agent,” Zillow CEO Spencer Rascoff said on his company’s earnings call last week. “I think they have stated, quite publicly, that they aim to acquire more listings inventory in given markets, and then have no buyers’ agents on the other side of those listings. And that is a threat to organized real estate, and that’s one of the many reasons why brokerages are so concerned about Redfin.”
Shares of the Seattle-based company closed up 14.54% on Tuesday at $28.59 a share. Despite today’s big jump, the young company fell below its all-time closing high (also read: Tech-Based Real Estate Startup Redfin (RDFN - Free Report) Soars Again).
Redfin’s IPO offered only 9.2 million shares at $15 a share, which along with its relatively small market cap of $2.2 billion, can cause the company’s stock price to see massive one-day volatility.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month. Learn the secret >>