That allows Redfin to keep its commission fees 1% to 2% lower than those of other brokerage firms, then pass those savings on to consumers. In total, management estimates the company's addressable market in the U.S. at $180 billion, representing a combination of commissions, closing services, and marketing services. Compass, the eight-year-old real estate brokerage led by former Goldman Sachs Group Inc. banker Robert Reffkin, filed late Monday for a listing on the New York Stock Exchange. For instance, the Compass platform uses AI-powered analytics to surface lead ideas, helping agents identify potential buyers and sellers. Investing in IPOs can be risky. Of course, soon it will be commonplace for retail traders to buy shares through brokerage apps, but this is … China’s Economic Divide Between North and South Is Set to Wi... Draghi Bets 261 Billion Euros on Redesign for Italy Economy, Kuroda to Miss Price Goal as Japan’s Inflation Hunt Drags On, Bond Investors Take Ever-Riskier Bets in Hunt for Returns. Shares of SoftBank Group Corp-backed Compass Inc jumped 18% in their stock market debut on Thursday after being priced at the lower end of the reduced initial public offering (IPO… Additionally, while Redfin also provides brokerage services, it employs its own agents and pays them salaries (rather than commissions). This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. The company, which has grown through a series of acquisitions, is hunting bigger game in its pursuit of CoreLogic. Crystal Tse. CAGR = compound annual growth rate. Appraising Compass’ Valuation. Compass primarily generates revenue through brokerage commissions, though it offers title, escrow, and mortgage services as well. Unlike traditional flippers, who seek to buy low and sell high, the iBuyers are aiming for small profits and lots of transactions, and seeking to buttress their income by selling adjacent services like mortgage origination and title services. Compass agents also had a shot at buying pre-IPO shares for $18 per share. Compass, which raised more than $1.5 billion from SoftBank Group Corp.’s Vision Fund and other investors, is approaching the opportunity with an appeal to real estate agents, touting software for scheduling home tours, designing marketing materials and communicating with clients. “Investors have this infatuation with anything that combines real estate and tech and are pouring tons and tons of money into it,” said Mike DelPrete, a real estate tech strategist. To start, ... Compass’ IPO listing is for Class A shares, with one vote per share. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. By comparison, Redfin's brokerage service facilitated $37 billion in transactions, giving the company a 1% market share. This eliminates the need for real estate agents, with the goal of simplifying the process for consumers. So is the stock a buy? Cumulative Growth of a $10,000 Investment in Stock Advisor, Is Compass Stock a Buy After Its IPO? Notably, the company puts its global market opportunity at $570 billion. clients that the platform identifies as "likely to sell"). As a result, its market share has quadrupled over that period. By comparison, Redfin and Zillow Group generated $61 million and $424 million in operating cash flow, respectively. Start,... Compass ’ IPO listing is for Class a shares, one. Building a larger position best to wait a few shares now, that should be fine to IPO! 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