The Bull Case For Rocket Companies (RKT) Could Change Following Google’s Test Of Home Listings Integration - Learn Why

• In recent days, Google’s trial of a home sales listings feature heightened concerns about stronger competition for Rocket Companies’ Redfin-powered online real estate platform, against a backdrop of softening U.S. housing demand with pending home sales down and mortgage rates holding above 6%.
• These developments spotlight how powerful technology platforms can quickly reshape the landscape for integrated home search, brokerage, and mortgage services that Rocket has been building.
• We’ll now examine how Google’s push into home listings, and the competitive pressure it implies, could influence Rocket Companies’ investment narrative.

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Rocket Companies Investment Narrative Recap

To own Rocket Companies, you need to believe in its vision of an integrated, tech-led homeownership platform across search, brokerage, and mortgage in a challenging US housing market. Google’s trial home listings product reinforces competition risk for that ecosystem but, based on the recent share move and lack of business changes, does not yet appear to alter the near term catalyst around execution on Redfin and Mr. Cooper integration, nor the key risk of prolonged housing affordability pressure.

Among recent news, Google’s test is most directly related to Redfin, the brokerage powered by Rocket that is pushing an integrated “search to close” experience. Redfin’s ongoing flow of housing affordability and risk reports keeps its brand and data front and center with consumers and agents, which can support Rocket’s funnel in a period of weaker demand and higher mortgage rates. How effectively Rocket converts that attention into profitable originations while mortgage rates stay above 6 percent is where...

Read the full narrative on Rocket Companies (it's free!)

Rocket Companies' narrative projects $8.7 billion revenue and $3.2 billion earnings by 2028.

Uncover how Rocket Companies' forecasts yield a $19.92 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Eight members of the Simply Wall St Community currently see Rocket’s fair value between US$19.92 and US$40.00, showing how far apart individual views can be. When you weigh those opinions against the risk that powerful tech platforms like Google could compress margins and raise customer acquisition costs, it becomes even more important to compare several perspectives before forming your own view.

Explore 8 other fair value estimates on Rocket Companies - why the stock might be worth over 2x more than the current price!

Build Your Own Rocket Companies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Rocket Companies research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Rocket Companies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rocket Companies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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