What Happened?
Shares of real estate technology company Compass (NYSE: COMP) fell 4% in the afternoon session after reports surfaced that Google tested a feature to show home sales listings directly in its search results, sparking fears of new competition.
This test, although limited to mobile devices in select areas for now, could significantly challenge existing real estate platforms. The move by the search giant sent ripples across the industry, affecting other real estate stocks as well. Zillow Group's shares tumbled 11%, while Rocket Companies and eXp World Holdings also saw their stock prices drop. The market's reaction showed investor concern that a powerful new entrant like Google could disrupt the online property market.
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 Compass? Access our full analysis report here.
What Is The Market Telling Us
Compass’s shares are very volatile and have had 22 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 21 days ago when the stock gained 6.3% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
Compass is up 78.9% since the beginning of the year, and at $10.38 per share, it is trading close to its 52-week high of $10.84 from December 2025. Investors who bought $1,000 worth of Compass’s shares at the IPO in March 2021 would now be looking at an investment worth $514.89.
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