Why Redfin Stock Is Soaring Today
Sometimes what would ordinarily be viewed as bad news is seen as good news for a specific company. On Thursday, investors responded to rising unemployment numbers by bidding up shares of Redfin (NASDAQ: RDFN) as much as 12%.
The Federal Reserve has made it clear it needs to see economic pain before it slows interest rate hikes. For a company like Redfin, a surge in unemployment might be what it takes to ease the rate pressure on the housing market.
The year 2022 will go down as the worst for housing since the 2008-2009 recession, and Redfin shares have taken a beating as a result. Shares of the company have lost 89% of their value since Jan. 1, as the Fed's effort to cut inflation by hiking interest rates has led to a slowdown in real estate sales.
Source Fool.com
