Compass (COMP) Jumps 5% as Analyst Sees Minimal Impact from Google's Property Listing Test

We recently published 10 Stocks Shining Bright Amid Wall Street’s Dull Spell. Compass Inc. (NYSE:COMP) is one of the top performers on Tuesday.

Compass bounced back by 5.13 percent on Tuesday to close at $10.87 apiece as investors poured funds back in after an analyst downplayed the potential impact of a technology giant’s possibility to emerge as a competitor in the real estate listing market.

This followed news on Monday that Google is testing out a new service that would list real estate properties directly on its search engine.

Similar to features from property websites, Google’s listing test enables users to view the full details of a property, including unit sizes, the number of bedrooms and bathrooms, and the year it was constructed, among others.

Following the news, Wells Fargo issued comments for one of Compass Inc.’s (NYSE:COMP) counterparts, downplaying the impact of Google testing and helping allay investor fears for the overall sector.

According to Wells Fargo, it expects Google’s move to provide only a limited downside to Zillow Inc., saying that it does not expect a meaningful financial impact from listings on Google.

“The listings product appears similar to Google Hotel Metasearch results; introduction could increase traffic cost to Zillow, but disintermediation unlikely,” it said.

“In the hotel category, Google merchandises hotel rooms in search results as a metasearch ad product for OTAs (online travel agencies). We would expect a similar approach in real estate,” it added.

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.