What Happened?
Shares of fintech mortgage provider Rocket Companies (NYSE: RKT) fell 3.7% in the afternoon session after Google's trial of a home sales listings feature in its search results sparked fears of new competition.
The move by the tech giant was seen as a potential disruption to existing online real estate platforms. The news also negatively affected other companies in the sector. Shares of Zillow Group plunged 11%, while Compass and eXp World Holdings also saw their stocks fall. The broad sell-off indicated investor concern that Google's entry into the space could challenge the business models of established real estate companies, creating a more competitive landscape.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Rocket Companies? Access our full analysis report here.
What Is The Market Telling Us
Rocket Companies’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 24 days ago when the stock gained 7.2% on the news that comments from a key Federal Reserve official boosted hopes for an interest rate cut.
New York Fed President John Williams stated that he sees “room for a further adjustment” for interest rates in the near term. Following his speech, traders increased their bets on a rate cut, with the probability of a December reduction jumping from around 39% to over 70%, according to data from CME Group. This optimism is particularly beneficial for homebuilders, as lower interest rates translate into more affordable mortgages for potential buyers, which could stimulate demand for new homes. The positive sentiment was also reflected in the bond market, where the yield on the 10-year Treasury, a benchmark for mortgage rates, eased following the comments.
Rocket Companies is up 66.9% since the beginning of the year, but at $18.11 per share, it is still trading 14.4% below its 52-week high of $21.16 from September 2025. Investors who bought $1,000 worth of Rocket Companies’s shares 5 years ago would now be looking at an investment worth $809.93.
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