Why Redfin Stock Lost 12% Today
Shares of Redfin (NASDAQ: RDFN) were tumbling today after the company said it would lay off 13% of its workforce, or 862 people, and shutter its iBuying (instant buying) division, RedfinNow. That follows a similar move by rival Zillow a year ago.
As a result, the stock finished the day down 12%.
Ahead of the company's third-quarter earnings report after hours today, CEO Glenn Kelman emailed the company to tell them it was closing the home-flipping business, telling staff that the business wasn't worth the risk in an environment with rising interest rates and falling home prices across much of the country.
Source Fool.com
