Why Redfin Stock Plunged on Friday
Shares of Redfin (NASDAQ: RDFN) fell more than 14% on Friday. A host of factors are weighing on the discount real estate brokerage's stock price and the housing market as a whole.
As the number of cases of COVID-19 continues to rise rapidly in the U.S., it's looking increasingly likely that the economy will fall into a recession. In turn, home sales are expected to decline sharply in the months ahead.
In response, Redfin has canceled open houses and suspended its iBuyer program. Investors are concerned that the company will see a drastic decline in home listing fees and potentially suffer large losses on the homes it has already purchased.
Source Fool.com
