Purplebricks’ shares had another volatile day on the stock exchange yesterday, dipping below the £3 mark, before picking up again some 8% this morning in early trading.
The reason for yesterday’s fall is unclear.
Some analysts and others we spoke to yesterday could not identify any particular causes, but some speculated that the US launch could be proving trickier than anticipated.
Yesterday, the shares closed at 290p, or nearly 8% down.
Purplebricks, heavily backed from the start by fund manager Neil Woodford, originally launched on the stock market in December 2015 with shares priced at £1.
Last July, the shares peaked at 513p, and at the end of January they were not far off at 490p, giving Purplebricks a market capitalisation of over £1bn.
Today, millions have been wiped off the value of the company, with the market cap now at around £852m.
It launched in the US last September 15, beginning its roll-out in California. It has said it will be going into New York.
Yesterday, according to US portal Zillow, Purplebricks had 187 active listings and 34 Local Real Estate Experts, with some having no listings at all.
However, the US real estate market means that agents can still do well from few deals, simply because commissions are so much higher than in the UK.
In Australia, where Purplebricks launched in August 2016, its CEO Ryan Dinsdale says it achieved 435 sales in the first six months.