Redfin Corporation (NASDAQ: RDFN) shatters expectations as it soars to $20.96, up to 40% from its IPO price of $15 on Friday. The real estate company which combines both online listings and traditional real estate agents is hoping to raise up to $129 million from its IPO as it filed with the SEC. The new model pairs technology with the traditional feel and tours of a real estate company in order to bring home shopping to a wider segment of the population. Although the company has not been profitable, it recorded revenue of $267 million in 2016, and $187 million in 2015. Much like most real estate companies, this one too is susceptible to economic conditions, such as consumer confidence and interest rates, but the prospect of using machine learning in order to help people buy a home is an attractive mollusk, their 20 million average monthly visitors think so too.
Redfin also offers customers something different. Redfin Now is a service in which customers sell their house to Redfin, which then relists and sells the house. The enticing point of this is that sellers get their money faster, albeit less of it, and without the fuss of selling the house the old fashioned way. The innovations in this start up are what sets it apart from its competition, and for now its soaring.