Why Redfin Corporation (RDFN) Soared Last Week?

We recently published a list of These 10 Stocks Posted Double-, Triple-Digit Gains Last Week. In this article, we are going to take a look at where Redfin Corporation (NASDAQ:RDFN) stands against other stocks that posted double-, triple-digit gains last week.

Micro- and small-cap companies dominated gains on the stock market last week, bucking an overall market pessimism, thanks to a flurry of company developments that bolstered investing appetite, including acquisition and stellar earnings performance.

In this article, we listed the names of last week’s top performers and detailed the reasons behind their gains based on their share prices last Friday, March 14, and their closing prices on March 7, or the Friday prior.

We classify micro-cap companies as those with a market capitalization below $300 million and small-cap firms as those with a market capitalization below $1 billion.

A skyline view of a bustling city, representing the company’s presence in the real estate market.

Redfin Corporation (NASDAQ:RDFN)

Redfin Corp. soared by 83.8 percent in just a week’s trading as investors reacted positively to news that it is set to merge with Rocket Companies Inc. (NYSE:RKT) for an all-stock deal valued at $1.75 billion.

In a statement last week, RKT said it had entered into an agreement with RDFN for the acquisition of its shares for $12.50 as it seeks to boost its lending business.

The value represented a 16.8-percent premium from RDFN’s close of $10.7 on Friday.

Founded in 2004, RDFN is one of the US’s leading real estate brands, operating a top-three home search platform with more than 1 million for-sale and rental listings and a tech-powered brokerage of more than 2,200 agents.

“[RKT] and [RDFN] have a unified vision of a better way to buy and sell homes,” said Varun Krishna, CEO of Rocket Companies. “Together, we will improve the experience by connecting traditionally disparate steps of the search and financing process with leading technology that removes friction, reduces costs, and increases value to American homebuyers.”

Overall, RDFN ranks 6th on our list of stocks that posted double-, triple-digit gains last week. While we acknowledge the potential of RDFN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as RDFN but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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