Latest news with #RobertReffkin
Yahoo
03-07-2025
- Business
- Yahoo
Compass Stock Rated Buy by UBS on Tech Integration and Growth Strategy
Compass Inc. (NYSE:COMP) ranks among the 30 stocks expected to beat the market by 20 percentage points this year. On June 2, UBS analysts upheld their Buy rating and kept Compass Inc. (NYSE:COMP)'s price target at $11. The update followed a recent discussion with Compass executives, including Head of Investor Relations Soham Bhonsle, CFO Kalani Reelitz, and CEO Robert Reffkin. UBS analysts emphasized the company's strategic focus on improving inventory depth and integrating technology with Compass's network of more than 20,000 main agents. Despite the housing market cycle's risks, the approach seeks to increase high-margin income streams. The analysts also praised Compass's efforts to increase auxiliary product attachment, grow organic agents, and maintain the growth of non-GAAP operating expenses to 3-4% annually. They also cited the company's acquisition of reputable brokerages as an intelligent move. Compass Inc. (NYSE:COMP) provides technology-enabled real estate brokerage services in the United States. Together with title, escrow, and home renovation finance services, it offers agents an integrated platform that includes CRM, marketing, and client support tools. While we acknowledge the potential of COMP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From Compass's Q1 Earnings Call
Compass reported first quarter results that fell short of Wall Street's revenue and profit expectations, leading to a sharp negative market reaction. Management attributed the quarter's mixed performance to both industry headwinds and execution on strategic initiatives, citing strong agent recruitment and increased market share despite ongoing volatility. CEO Robert Reffkin emphasized that Compass outpaced the broader real estate market in transaction growth, noting, 'Compass's total transaction count outpaced the market by close to 30%.' The company also highlighted record retention rates and the initial benefits of its Christie's International Real Estate acquisition. However, management acknowledged some caution, pointing specifically to market disruption in March related to tariff policy discussions and a temporary dip in transaction activity. Is now the time to buy COMP? Find out in our full research report (it's free). Revenue: $1.36 billion vs analyst estimates of $1.42 billion (28.7% year-on-year growth, 4.6% miss) Adjusted EBITDA: $15.6 million vs analyst estimates of $20.47 million (1.2% margin, 23.8% miss) Revenue Guidance for Q2 CY2025 is $2.08 billion at the midpoint, below analyst estimates of $2.11 billion EBITDA guidance for Q2 CY2025 is $125 million at the midpoint, below analyst estimates of $126.9 million Operating Margin: -4%, up from -12.5% in the same quarter last year Transactions: 49,121, up 10,672 year on year Market Capitalization: $3.32 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Chris Kuntarich (UBS) asked about the impact of March's market disruption and whether lost transactions would recover later in the year. CEO Robert Reffkin responded that he expects the dip was temporary and that deferred transactions should be completed if market stability returns. Steve Roman (Oppenheimer & Co.) sought clarity on the legal standing of the three-phase marketing strategy amid evolving industry regulations. CEO Robert Reffkin reiterated that the approach remains compliant and continues to offer homeowners more choice under current rules. Bernie McTernan (Needham & Company) inquired about whether recent changes in industry policy affected agent recruiting momentum. CFO Kalani Reelitz stated that agent recruitment remained strong and that the company continues to see favorable trends in both technology adoption and inventory strategy. Michael Ng (Goldman Sachs) questioned trends in agent churn and metrics for success with the three-phase marketing strategy. CEO Robert Reffkin explained that churn was in line with historical patterns and that the goal is to provide agents with a competitive edge, leading to increased listings and better transaction terms for clients. Elizabeth Langan (Barclays) asked how agents utilize private exclusive listings and whether most eventually transition to public market listings. CEO Robert Reffkin explained that 94% of listings, including those that begin as private exclusives, ultimately reach the MLS, with the three-phase approach offering flexibility without limiting exposure. In the coming quarters, our team will closely watch (1) Compass's ability to sustain its agent recruitment momentum amid industry regulatory changes, (2) further expansion and integration of title, escrow, and Christie's affiliate businesses to improve margin profile, and (3) how well the company navigates transaction volume volatility tied to macroeconomic and policy shifts. Progress in cross-selling ancillary services and maintaining operational discipline will also be key indicators of execution. Compass currently trades at $6.51, down from $7.71 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
26-06-2025
- Business
- CNBC
Compass CEO: Mamdani win has paused homebuying more than any event in my 13 years of NYC real estate
Robert Reffkin, Compass co-founder and CEO, joins CNBC's 'Squawk on the Street' to discuss the impact of New York City mayoral candidate Zohran Mamdani's primary win on real estate, solutions to the city's affordability crisis, and more.
Yahoo
25-06-2025
- Business
- Yahoo
Real estate company Compass sues Zillow over consumers 'right to choose'
One of the largest U.S. residential real estate brokerage firms is taking on real estate giant Zillow over "consumer choice." On Monday, real estate brokerage Compass filed a 60-page complaint in Manhattan federal court, claiming that Zillow is improperly refusing to list homes on its site that were first listed elsewhere. "The Zillow Ban seeks to ensure that all home listings in this country are steered on to its dominant search platform so Zillow can monetize each home listing and protect its monopoly," the complaint states, addin that "[i]n a free and competitive market, competitors' products and strategies should rise and fall on merit—not the whims of a monopolist gatekeeper like Zillow." "This lawsuit is about protecting consumer choice," Compass Founder & CEO Robert Reffkin said in a statement to FOX Business. "No one company should have the power to ban agents or listings simply because they don't follow that company's business model. That's not competition. It's coercion. Imagine if Amazon banned a seller for offering a product on their own website first. That's what Zillow is doing in real estate. Consumers should have the right to choose how they sell their homes." Real Estate Giants Crack Down On Exclusive 'Off-market' Home Listings In Major Shift For Buyers Compass, based in Manhattan, is seeking an injunction against Zillow to force them to change their practices, as well as monetary damages. Read On The Fox Business App Home Sellers Face Harsh New Reality As Listings Hit Record $69B Value Zillow, based in Seattle, has about 160 million homes in its database, receives 227 million unique visitors a month and received 2.4 billion visits between January and March, according to Reuters. They called Compass' claims "unfounded" and told FOX Business that it "will vigorously defend against them." "When a listing is publicly marketed, it should be accessible to all buyers – across all platforms, including Zillow," a statement from a Zillow spokesperson said. Click Here To Read More On Fox Business "Hiding listings creates a fragmented market, limits consumer choice and creates barriers to homeownership, which is bad for buyers, sellers, and the industry at large, especially in this inventory and affordability-constrained environment," the spokesperson added. Reuters contributed to this report. Original article source: Real estate company Compass sues Zillow over consumers 'right to choose' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fast Company
23-06-2025
- Business
- Fast Company
Compass' lawsuit against Zillow highlights the growing power struggle in online real estate
Two of the nation's real estate titans are on a collision course. Compass, one of the largest brokerages in the country, has filed a complaint in a New York federal court against Zillow, alleging the online behemoth is engaging in 'anticompetitive tactics' and violating antitrust laws. The suit accuses Zillow of banning listings that were marketed elsewhere first, saying it has 'retaliated against competitive threats by enacting an exclusionary policy.' 'This lawsuit is about protecting consumer choice,' said Robert Reffkin, Compass founder and CEO, in a statement to Fast Company. 'No one company should have the power to ban agents or listings simply because they don't follow that company's business model. … Consumers should have the right to choose how they sell their homes.' Zillow did not respond to Fast Company's request for comment about the suit. The faceoff between the two companies has been brewing for some time. Compass has been growing steadily, most notably with last December's acquisition of Christie's International Real Estate in a deal worth $444 million. Earlier this year, it was also reported to be in talks to buy the real estate brokerage business of Berkshire Hathaway. Compass has been promoting its Private Exclusives and Coming Soon online listings for several months, which feature thousands of homes available only to Compass agents and their buyers. Two months ago, Zillow unveiled a new policy that any home put on the market but not made available to Zillow within 24 hours would be banned from the site. 'Instead of competing on the merits for home sellers, home buyers, and the agents who work for them, Zillow has sought to rely on anticompetitive tactics to protect its monopoly and revenues in violation of the antitrust laws,' the filing reads. The suit says Zillow has become the 'vital, go-to destination for consumers looking to purchase homes,' through the 'relentless acquisition of competitors' and 'the power of network effects.' That, Compass claims, effectively makes it a tollbooth for agents, allegedly collecting up to 40% of the buyer agent commission for referring the buyer. Additionally, it accuses Zillow of charging potential buyers to tour listed properties—something that is typically free. 'Every time a buyer requests a tour on Zillow, Zillow redirects the buyer away from the listing agent of the property, who would not charge the buyer an incremental commission,' the lawsuit states. 'Instead, Zillow directs the buyer to a Zillow-affiliated buyer agent who charges the buyer an incremental commission to show the property.' Compass argues that it and other realtors should have the right to market homes themselves, without being required to send listings to Zillow. This sometimes involves an extended 'coming soon' period, which Compass says allows sellers to showcase homes before they are fully market-ready, gauge early interest, and test demand—without increasing the 'days on market' count or triggering price reductions. Zillow, in April, argued that everyone should have access to that information, citing the National Association of Realtors' long-standing 'clear cooperation' policy, which requires agents to list homes on their local MLS within 24 hours of beginning any public marketing. 'Listings shouldn't be used as leverage to control who gets to participate in the home-buying process,' Zillow wrote when announcing the new rules. 'Practices that selectively share listings … create confusion, harm consumers and erode trust in the marketplace. It's a bait-and-switch move, where agents or brokerages try to get the best of both worlds.' Compass, in its lawsuit, counters this argument, saying Zillow should not be allowed to ban listings that don't align with its business model. 'Zillow is so comfortable with its size and power that it has adopted a policy that governs what other real estate companies can do on platforms other than Zillow,' the complaint reads. 'It effectively is leveraging its power to promulgate and enforce industry-wide rulemaking like a government regulator, despite being a private company that does not even provide brokerage services, represent home sellers and buyers, or create the listings on which it profits.'
