Why eXp World (EXPI) Stock Is Nosediving

What Happened?

Shares of real estate technology company eXp World (NASDAQ:EXPI) fell 15.4% in the morning session after the company reported disappointing second-quarter financial results, including a significant earnings miss and a net loss. 

The real estate brokerage posted a loss of $0.01 per share, which missed analyst estimates of a $0.09 profit. While revenue landed in line with expectations at $1.3 billion, operating expenses increased. The company also saw key business metrics weaken, as the number of agents on its platform fell by 5% and real estate transactions declined by 2% compared to the previous year. Furthermore, the company's cash position weakened, impacted in part by a $17 million payment for an antitrust litigation settlement during the quarter.

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What Is The Market Telling Us

eXp World’s shares are very volatile and have had 23 moves greater than 5% over the last year. But moves this big are rare even for eXp World and indicate this news significantly impacted the market’s perception of the business.

eXp World is down 17.5% since the beginning of the year, and at $9.36 per share, it is trading 36.7% below its 52-week high of $14.77 from November 2024. Investors who bought $1,000 worth of eXp World’s shares 5 years ago would now be looking at an investment worth $933.63.

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