Why Redfin Stock Plummeted by Nearly 11% Today
Not one but two gloomy internal pieces of research sent Redfin (NASDAQ: RDFN) stock hurtling downward on Monday. The online real estate marketplace operator's shares fell by nearly 11% as a result, a far steeper descent than even the sub-4% experienced by the weakening S&P 500 index on the day.
Monday morning before market open, Redfin disseminated the findings of a homebuyer budget analysis produced by its researchers. The findings were sobering: In the three months ending April 30, the average such budget barely inched up, rising a weak 0.3% on a year-over-year basis. That was the lowest growth rate since June 2020, according to the real estate company's findings.
Redfin pointed out, sensibly, that a drop in home-buying budgets decline indicates that housing price growth has peaked and will soon fall.
Source Fool.com
