Is Redfin Stock a Buy?
Real estate companies have been absolutely crushed as interest rates soared and the housing market stumbled. Redfin (NASDAQ: RDFN) is the No. 1 real estate website by visitors, with more than five times the traffic of its nearest competitor. It uses the traditional model of real estate agents, but in a new and improved version for the digital age.
As you might expect, Redfin was up and coming before inflation took off in early 2021. Its shares have plunged more than 90% since then. With the stock so cheap, is the potential reward worth the risk?
It isn't Redfin's fault that interest rates were raised and the housing industry dried up, but this is how cyclical businesses work. Homebuyers aren't looking to move out in this climate, which means fewer houses for sale, and fewer options for anyone who would buy. It's a depressing housing market.
Source Fool.com
