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Online Real Estate Isn’t Worth the Chance – The Wall Street Journal

You can make a lot of money on physical real estate right now, but recent results from major online real-estate players show 2022 isn’t the year to play Monopoly in the stock market.

The carnage isn’t about any one company. Since Compass ’s initial public offering last April, the S&P 500 is up more than 8%, while online real-estate stocks including Redfin , Zillow Group , Opendoor Technologies and Compass are down about 58% on average over that period. Their similar losses have come despite the fact each platform boasts a different business model—Opendoor is a pure-play iBuyer, Zillow is an iBuyer returning to an agent ad business, Redfin is a hybrid broker that also dabbles in iBuying and Compass is an old-school brokerage firm dressed up as a technology company.

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