One Week Later: A Closer Look At Redfin

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.

Related Link: Snap's Whipsaw Trading Action Following First Major Lock-Up Expiration

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.

Posted In: TechnicalsIPOsTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.