Why No One is Talking About EXP Stock Taking A Nosedive

 

Over the past year EXP Realty’s stock (EXPI) has soared from 7$ to 160$ at it’s peak in February of 2021! It currently trades at 39$ a share (78$ if you consider it’s pre-split price) just one month after it’s all-time high.

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Even at $39 a share thats still a HUGE gain and an amazing accomplishment, so why the concern? The concern comes from the thousands of agents that continually shared their stock portfolios on social media over the proceeding months as a recruiting tool to get agents to join their brokerage.

You see, EXP Realty has an ingenious way of providing additional value to their agents by distributing stock. Agents can purchase the stock at a discount, receive it as a bonus or a number of other incentives.

Agents get the added benefit of making money as their company stock rises.

And up until now that’s all its done, rise.

Agents are now experiencing what it’s like to see their portfolios go down in value and I can only guess that it hasn’t been a fun experience.

Watching an account dwindle hundreds and thousands of dollars weeks at a time has a detrimental effect on ones emotions, focus & overall wellbeing.

Especially to those who recently joined and didn’t have the benefit of getting in before the rise of the stock.

So why mention this, why even bring it up?

Honestly. It’s because someone has to.

Someone has to point out the negative sides of working for a company that sells the idea of stock as a retirement account.

And that there is absolutely zero guarantee that EXPI will maintain it’s current price, go up to $100 or fall back to 7$ a share and unfortunately that’s the gamble agents are taking by jumping on the bandwagon in hopping of striking it rich.

So take this as a cautionary tale. One that points out the pluses and the minuses of owning shares of a company who’s price are not determined by them, but the opinion of others.