Compass is a real estate tech company that pivoted towards being a traditional brokerage in lieu of being an actual real estate tech company. With this latest decision, will large brokerages go under because they won’t be able to collect large commission fees anymore? Or will it help them somehow? https://www.housingwire.com/articles/missouri-jury-finds-nar-brokerages-guilty-of-conspiring-to-inflate-commissions/#tech
Nobody cares! The founders and employees already cashed out during IPO.
Almost no employees cashed out. The stock dropped too fast and we were prohibited from selling
Traditional real estate is going to go through an unprecedented consolidation, similar to the thousands of regional banks that evaporated post 2008. Compass as a company will continue to exist as long as residential real estate exists because at its core, it's a Traditional Brokerage. But the hopes of a tech multiple and explosive growth and profitability disappeared in 2021
I agree there will be consolidation and that should benefit major players like Compass to some degree, but could this actually make traditional brokerages not viable at all? Is a technology-only solution (i.e. no realtors at all) the ultimate outcome?
been dead for at least a year
Thin margins and high stock based compensation = recipe for disaster. These companies only survive in scam world which is 0 interest rates. But it may be setup for pump and dump as it sold so much. Suddenly big money hedge funds like citadel will take a big position and manipulating stock price. Retail will jump noticing a reversal trend. Citadel will sell its position and make money. Later citadel will short it and push it to new all time lows. Later retail will panic sell. Low market cap stocks are subject to such manipulation.