eXp World Holdings (EXPI -1.38%) has been one of the undisputed winners of the digital transformation. The online real estate software company has gained more than 1,000% over the past 12 months and is up 100% so far this year. Over the past couple of weeks, however, the stock tumbled more than 18%.
On this clip from Motley Fool Live recorded on Feb. 10, "The Wrap" host Jason Hall, Fool analyst Nick Sciple, and Fool.com contributor Danny Vena discuss the cause of the decline and why it's important to focus on the longer-term.
Jason Hall: I'm not sure are either of you familiar with EXP World Holdings ticker EXPI?
Nick Sciple: I know what they do. I know it's kind of in the real estate brokerage space, kind of in this universe that more on the tech side of that it is in the universe, it is lumped in with the Zillow's (Z -2.59%) (ZG -2.85%) and Redfin's (RDFN -4.45%) of the world. They consider themselves a virtual real estate brokerage. Have an interesting compensation model with folks. I know it grown a ton and I know the stock is basically gone straight up over the past month or so. But I don't know what it is at stock today.
Jason Hall: It's a 12-bagger over the past 12 months.
Nick Sciple: Yeah.
Jason Hall: Then it fell today. I don't see any news either. I do know this, Zillow and Redfin both report tomorrow. So it could be because of that crazy run, this could just be a little bit of selling the whisper so to speak. There is this idea their earnings is going to come out. So maybe that's what's going on. Danny, what do you got for us?
Danny Vena: I actually just looked that up really quickly and one of the headline articles right at the top of the queue on Yahoo!Finance said EXPI has been on a huge run. Why it's time to take some profits. [laughs] So that sounds like you're right there.
Nick Sciple: It's one of those like so whenever a stock is up 10% in a day, whenever like hey, I mean sometimes we're OK, why is it up? But whenever like questioning a whole lot and I think it was for stock like this, it's probably been going up for you and I haven't watch this every day, but it's probably been going up for your steady every single day. Then this is that same volatility turnaround the other way. I don't think it's surprised you that stock has been on this type of run over the past year, is going to have some days like this.
Danny Vena: Just to put that in perspective, if you look at the chart, even after today's drop, the stock is up 116% year-to-date.
Jason Hall: Great. In two months. We're talking 41 days.
Danny Vena: That's why it's down.