Good afternoon. Risk off ruled the day for large cap as QQQs -1.2% and BTC -4%. ARKK/IWM held in better finishing roughly flat. Software and internet led the way lower.
In internet, Z-14% and RDFN -5% as the NAR announced a settlement agreement related to multiple broker commission lawsuits putting in a place a new MLS rule prohibiting offers of broker compensation on the MLS, the read-through being that commission lawsuits would happen faster than expected and suggests significant changes to traditional commission sharing practices as soon as this year. It’s still unclear who will end up paying the buyside commission (the proposed rules don’t prohibit it) but the shift does grant sellers more negotiating power and will likely compress commissions for buyer agents. Investors looking at around 50/75bps of buyside fee compression, which would be a mid teens/20%+ hit to ZG PA revs, with high flow through to EBITDA. Will likely be an overhang until we get more clarity later this ye…
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