Markets

Here's Why eXp World Holdings Stock Was Soaring on Tuesday

What happened

The stock market was having a so-so day on Tuesday, with the Dow Jones Industrial Average and S&P 500 modestly lower as of 3 p.m. EDT and with the Nasdaq slightly in the green. However, eXp World Holdings (NASDAQ: EXPI) was a major outperformer, with shares of the tech-focused real estate brokerage company up by more than 14%.

So what

Today's move might seem odd at first -- while we're well into third-quarter earnings season, eXp doesn't officially report its latest results until Nov. 9. However, the company surprised investors today by releasing preliminary results for the third quarter, and the numbers were quite impressive.

House with for sale sign indicating sold.

Image source: Getty Images.

Specifically, the number of agents and brokers on eXp's platform jumped by 56% year-over-year. Residential transactions closed in the third quarter nearly doubled from a year ago, and volume was up by a staggering 112%, indicating growth not only in the number of homes sold, but also in the average selling price. And the company's agent net promoter score increased dramatically, indicating that the nearly 36,000 agents on the eXp Realty platform are generally very satisfied with it.

Now what

This is just some of the information that will be released when eXp reports earnings, and doesn't tell the whole story. For one thing, it doesn't tell us anything about profitability. And perhaps even more importantly, there's nothing really forward-looking in the pre-release, and if the company's guidance or management comments are stronger or weaker than expected, it could still move this growth stock on earnings day.

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Matthew Frankel, CFP has no position in any of the stocks mentioned. The Motley Fool owns shares of eXp World Holdings. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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