Two of the highest-profile IPOs of 2017, Snap Inc SNAP and Blue Apron Holdings Inc APRN, have been nothing short of disastrous for investors so far this year. Snap shares are now trading 25.9 percent below their IPO price, while Blue Apron shares are down 37.6 percent in an even shorter time.
One of the bright spots in the 2017 IPO market has been Redfin Corp RDFN. The residential real estate brokerage services company hit the ground running after its IPO priced at $15 per share, above its expected range of $12 to $14. The stock surged 44.7 percent in its first day of trading a week ago, and hit a new all-time high of $33.49 shortly after Thursday’s open. However, the stock quickly made a sharp turn for the worse, plummeting 15 percent to around $28.
Long-term investors are hoping Redfin isn't repeating the same pattern that Snap demonstrated in its first few weeks of trading. Within days of its market debut, Snap shares peaked as high as $29.44, up 73 percent from its IPO price. However, once Snap broke lower, it never looked back. Snap shares dipped as low as $11.90 on Thursday amid a massive lock-up expiration period.
Redfin is so new to the market that it hasn’t established major technical support levels just yet, so traders will be watching how the stock performs very closely in the coming days to see if Thursday’s trading action carries over into a longer-term trend.
In addition to its first quarterly earnings report, trades will be watching to see how the stock reacts to key fundamental catalysts including quiet period expiration on September 6 and lock-up expiration on January 24, 2018.
Joel Elconin contributed to this story.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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