Why Redfin Stock Fell 29% Last Month
Shares of digital real-estate broker Redfin (NASDAQ: RDFN) fell 28.7% in September, according to data provided by S&P Global Market Intelligence. After ballooning over the last couple of years, housing prices are starting to drop and the market is cooling. Therefore, it's not hard to see why investors might be hesitant with Redfin stock right now.
On Sept. 12, DA Davidson analyst Tom White lowered his price target for Redfin stock from $13.50 per share to just $9.50 per share. According to The Fly, White says that the U.S. housing market is a "headwind" for Redfin. And this pithy commentary about sums it up.
Redfin generates revenue from its brokerage services, buying and selling homes with RedfinNow, mortgage origination services, and more. But all of these income generators perform better in hot real estate markets. But as White points out, things are cooling down.
Source Fool.com
