What Happened?
Shares of real estate technology company eXp World (NASDAQ: EXPI) jumped 12.3% in the afternoon session after the company reported third-quarter 2025 financial results that beat revenue expectations.
Revenue grew 6.9% year-over-year to $1.32 billion, surpassing Wall Street's expectations of $1.24 billion. The company's profitability also showed improvement, with earnings per share (EPS) of $0.02, which was in line with analyst estimates and marked a significant turnaround from a loss of $0.06 per share in the same period last year. Additionally, adjusted EBITDA came in at $17.71 million, beating the consensus estimate of $16.25 million.
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What Is The Market Telling Us
eXp World’s shares are very volatile and have had 21 moves greater than 5% over the last year. But moves this big are rare even for eXp World and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 3.1% on the news that a cooler-than-expected inflation report fueled optimism for potential Federal Reserve rate cuts.
The September Consumer Price Index (CPI) rose 3.0% year-over-year, coming in just below the 3.1% analysts had forecast. While still above the Federal Reserve's 2% target, investors interpreted the slight cooling as a sign that inflationary pressures may be easing, potentially giving the central bank room to consider interest rate cuts in the near future. Sectors that are typically sensitive to interest rates, such as real estate and utilities, saw a notable lift. Lower rates can reduce borrowing costs and increase the appeal of dividend-paying stocks, boosting investor confidence in these areas.
eXp World is down 4.4% since the beginning of the year, and at $10.84 per share, it is trading 26.6% below its 52-week high of $14.77 from November 2024. Investors who bought $1,000 worth of eXp World’s shares 5 years ago would now be looking at an investment worth $520.40.
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