Why Redfin Stock Was Up 14% in August
Real-estate technology platform Redfin (NASDAQ: RDFN) reported earnings for the second quarter of 2020 on July 30, and results were strong enough to give the stock upward momentum in the weeks that followed. Shares were up 14.4% in August, according to data provided by S&P Global Market Intelligence.
In Q2, Redfin's revenue was only up 8% year over year, and it reported a net loss. However, both numbers were better than feared. The company employs real estate agents directly instead of having them work off of commissions. Because of this pay structure, Redfin had furloughed 36% of lead agents and laid off an additional 11% after customer inquiries suddenly plummeted 41% year over year due to the coronavirus.
This had cast a cloud over Redfin prior to the Q2 report.
Source Fool.com
