Why eXp World Holdings stock gained 13.3% in February


What happened

Actions of eXp World Holdings (NASDAQ: EXPI) climbed 13.3% in February, according to data from S&P Global Market Intelligence. The real estate and online education stock has gained ground thanks to continued momentum and a new partnership.

EXPI given by YCharts

EXp’s education technology platform Virbela has announced a new relationship with academic product and service provider Douglas Stewart Company. As a result of this partnership, Douglas Stewart’s software and services group will offer Virbela’s virtual campus and immersive learning environments to a reseller network targeting approximately 5,000 US colleges and universities and 132,000 K-12 schools. .

An hourglass casting a dollar sign shadow.

Image source: Getty Images.

So what

In addition to recent victories for its education technology business, eXp’s online real estate platform has delivered strong results and generated enthusiasm among investors. The company’s virtual real estate brokerage is booming, with a 56% increase for agents and brokers on its platform, helping to grow the company’s overall revenue by 100% year on year. on the other in the third trimester.

The announcement of new sales opportunities for its educational software Virbela has further brightened the outlook for the company, and its stock gains have been so large that the company recently closed a stock split. The two-for-one split of eXp was done at market close on February 16.

Even with a recent pullback, the company’s stock price is up about 830% from a year ago.

Now what

EXp World stock fell sharply in March in conjunction with the wider pullback in growth-dependent tech stocks. The company’s stock price has fallen about 33% in trading from this month so far.

EXPI chart

EXPI given by YCharts

eXp released its preliminary fourth quarter results on March 2. The company expects fourth-quarter sales to reach around $ 609 million, up 122% from the prior year period. Management expects net income of approximately $ 7.7 million for the quarter, representing 885% year-over-year growth. The team reports that the total number of agents and brokers on the eXp Realty platform grew by 63% per year in 2020, and closed residential transactions increased by 77%.

eXp has a market cap of around $ 6.2 billion and is trading at around 2.7 times expected sales this year and 155 times expected earnings.

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Keith noonan has no position in any of the stocks mentioned. The Motley Fool owns shares of eXp World Holdings. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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