Why Compass Stock Was Sliding Today

·2 min read

Shares of Compass (NYSE: COMP), one of the nation's largest real estate brokerages, were falling today after the company missed estimates in its second-quarter earnings report and issued weak guidance for the rest of the year. In a challenging environment in the residential real estate industry, Compass, which bills itself as a tech-forward real estate disruptor, posted revenue growth of just 4% to $2.02 billion -- just short of estimates at $2.12 billion. With revenue growth screeching to a halt, the company's losses significantly expanded as it had to absorb its increased investments in the business.