We recently published 10 Stocks Shining Bright Amid Wall Street’s Dull Spell. Compass Inc. (NYSE:COMP) is one of the top performers on Tuesday.
Compass bounced back by 5.13 percent on Tuesday to close at $10.87 apiece as investors poured funds back in after an analyst downplayed the potential impact of a technology giant’s possibility to emerge as a competitor in the real estate listing market.
This followed news on Monday that Google is testing out a new service that would list real estate properties directly on its search engine.
Similar to features from property websites, Google’s listing test enables users to view the full details of a property, including unit sizes, the number of bedrooms and bathrooms, and the year it was constructed, among others.
Following the news, Wells Fargo issued comments for one of Compass Inc.’s (NYSE:COMP) counterparts, downplaying the impact of Google testing and helping allay investor fears for the overall sector.
Affordable housing options in growing areas draw new residents looking for better living conditions and cost-effective choices.
According to Wells Fargo, it expects Google’s move to provide only a limited downside to Zillow Inc., saying that it does not expect a meaningful financial impact from listings on Google.
“The listings product appears similar to Google Hotel Metasearch results; introduction could increase traffic cost to Zillow, but disintermediation unlikely,” it said.
“In the hotel category, Google merchandises hotel rooms in search results as a metasearch ad product for OTAs (online travel agencies). We would expect a similar approach in real estate,” it added.
While we acknowledge the potential of COMP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
