Redfin stock
Redfin stock -95% from peak. It was very overvalued last year but right now it also seems like they're being excessively punished (industry is cooling but their positioning within it seems still solid). Revenue multiple is like 0.2 right now. Anybody has a perspective?
Do they ever generate any profit? Why do you put money on a loss bet when treasury is guaranteed to give you 4%. Not to mention their housing business is the most thing that fed wants to make recession happen on
No, but they never spent like crazy either. If they cost cut to reach a 5% profit their pe ratio changes to 4.
Assuming growth is stalled due to Fed, and with 2 billion revenue run rate, they need to cut about 300million to generate a profit. Assuming avg employees earn 200k there, they need layoff 1500 employees, which is 25% of the workforce. This is definite possible, that’s why people who bet mass layoffs are still trading the stock.
How are they aligning their business model is the question. Investors will start piling once there is some result. I guess nothing much to loose at this moment
If they were only a real estate listing and sales service I’d say they’ll be fine. Unfortunately, they also got into the business of buying real estate. Companies like Zillow, Opendoor, and Knock have been hit HARD by declining values of their portfolio. Expect the same for Redfin.
Did they go big on that? I thought only zillow and opendoor went big on it
More than half of their revenue came from ibuy program. I would say they are big
Good chance that they aren’t even around in 5 years so that 95% drop could still be too high…
To me they either go bankrupt or they survive and this is a 10 bagger in 5 years
They still haven't cut off that much?
Easier ways to make money. They could not turn a profit even with a hot housing market. Love their UX but they need to right size and recession needs to be in progress before I’ll even consider. Remind me in a year.
Their UX is worse than Zillow imo. 😅
I like redfin solely because they show the property taxes as part of the estimated monthly payment. That is very useful in a high property tax state.
Go all in, great opportunity.
Tempted to tbh
I just avoid pretty much all real estate “tech”
It is going 6x in 6 months. Guaranteed!
What are you putting up as your guarantee collateral ? Because you are going bankrupt if you think they are going up
Blind == Housing is crashing 95% to 1930s level