Sam Shueh
Silicon Valley Realtor
Redfin's (RDFN) first few hours of ipo stock performance suggests that investors are thinking RF more like a technology company, not a real estate brokerage. It's trading at a market cap equal to roughly six (6X) times its annual revenue in 2016 which was $256,000,000. I think investors these days are treating internet based companies more like Amazon, Zillow etc. These companies do not really post profit or pay back to investors. Rather any news generate will upset traditional companies how to do business.
"If Redfin is a brokerage, making $256 million in revenues have a number of realtors, lawyers who are benefited. Its valuation is nothing to brag about. Re/Max revenue was $176,000,000 and its stocks has a market cap of $1.73 b dollars trading its stocks(Rmax) at $56 almost twice of General Electric which still makes just about anything electric, jet engines etc. globally.
Rdfn appeals to tech savy, device comfortable users who prefer to DIY sharing most information often used by realtors only before. It provides full service, staging, and marketing for sellers and buyers. Their agents are very aggressive and have a large staff supporting agents or co-op realtors. They only operate in cities where home prices are high enough to make business sense and stay away from low margin, rural towns.
For IPO: Rdfin-ipo-rdfn-stock-trade
I know several realtors who work for RF as salaried realtors-brokers. A couple are lawyers happily getting out of office showing homes and doing contracts. Agents leads have been screened and prequalified and their impressive mls track records suggest that.
This is the kind of company that will impact appreciably how traditional real estate companies do business. Their local presence is now felt and will continue to be so. Oh, boy do I love competition's !!
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