In the past couple of years, Palantir Technologies (PLTR) has delivered remarkable gains. Since the start of 2023 alone, its shares have surged by more than 2,200%. This means that in just two and a half years, investors have potentially earned returns equivalent to a decade’s worth of growth.
Currently, with a market capitalization of $350 billion and a price-to-sales ratio (P/S) exceeding 100, it appears that potential gains for Palantir shares may be limited in the future. Over time, the underlying financial calculations tend to align with a stock’s actual performance.
If you’ve missed out on Palantir, here’s another promising fast-growing artificial intelligence (AI) and software platform that might catch your attention: The Real Brokerage, or REAX for short. Here’s why its stock could potentially deliver gains similar to those of Palantir in the coming years.
A lower-cost digital brokerage for real estate agents
The modernization of the housing market, particularly for residential properties, has yet to fully materialize. Current buyers and sellers encounter high commission fees and antiquated in-office brokerages that operate at a snail’s pace. Many inefficiencies and time wastage are prevalent in real estate transactions, which could be significantly reduced with the adoption of digital solutions.
The Real Brokerage enters the picture as a modern, cloud-based solution for real estate agents seeking an alternative to traditional brokerages. It provides digital brokerage services and software tools, catering specifically to those eager to break free from outdated brokerage models. Notably, all real estate transactions involving residential properties must be facilitated through a brokerage.
In the past, as well as currently, these brokerages have traditionally taken a significant portion of the commissions earned by real estate agents, even with contemporary online property listing platforms in place.
Embracing a digital-centric model without physical offices, The Real Brokerage manages to keep operational expenses minimal. Consequently, they are able to charge less commission from real estate agents using their platform, as compared to traditional brokerages.
Agents are choosing The Real Brokerage due to its affordable pricing and powerful software solutions. In the first three months of 2025, the number of agents joining this brokerage surged by 61% compared to the previous year, reaching approximately 27,000. This influx of agents resulted in a significant boost in real estate transactions, causing the quarter’s revenue to skyrocket by 76%, amounting to an impressive $354 million.
After becoming a publicly-traded company, The Real Brokerage has seen a massive increase in its cumulative revenue, surging over 10,000%. This puts it among the swiftest-expanding businesses globally.
Macroeconomic headwinds turning to tailwinds?
Despite a decline in existing home sales across the U.S., largely due to rising interest rates, The Real Brokerage is experiencing rapid growth. Transactions on an annual basis have dropped to approximately 4 million in recent periods, as opposed to the usual 6 million transactions in stable markets.
A decrease in home sales translates to reduced demand for The Real Brokerage. Nevertheless, it continues to gain significant market share and will likely profit when the market recovers.
Consider this scenario as a gradual rise in housing market demand for potential property buyers. People are eager to buy homes or relocate, but their financial circumstances prevent them from doing so due to high mortgage rates and house prices. As these factors shift, investors might experience significant growth in existing home sales, thereby boosting the expansion of The Real Brokerage.
Why The Real Brokerage could become the next Palantir
I’m absolutely thrilled about The Real Brokerage, as its rapid expansion isn’t the only thing that sets it apart – it’s their innovative use of Artificial Intelligence (AI)! They’ve introduced Leo AI, a digital AI assistant designed exclusively for real estate agents to streamline tasks related to homebuying and selling.
Buying a home can be quite a daunting task for both the buyer and agent, and this is precisely where AI shines. The Real Brokerage isn’t just riding the AI wave; they’re actively creating solutions tailored for it.
In the future, The Real Brokerage aims to establish an online real estate platform supported by artificial intelligence for its clients. This platform could potentially challenge Zillow Group. Although it’s still far from becoming widely available, The Real Brokerage harbors grand aspirations and is moving swiftly in an attempt to dominate the AI and software sector of the residential property market.
Currently, you have the opportunity to invest in The Real Brokerage’s shares, with a market capitalization of merely $823 million. Despite not being profitable just yet, the company is nearly reaching the breakeven point. This impressive milestone is worth noting for a company that brings in $128 million in gross profit and experiences revenue growth exceeding 50% each year compared to the previous year.
Investing in The Real Brokerage carries some risk, but it appears to be a promising contender for substantial gains if you decide to purchase shares now.
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2025-07-19 13:03