The Domain (ASX: DHG) share price rose 10% in 4 days to a high of 52 weeks. here’s why
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The Domain Holdings Australia Ltd The share price (ASX: DHG) has soared in 2021. Shares in the tech and real estate services sector are up 27% this calendar year, including gains of 10% since the opening last Tuesday. .
So what’s driving the valuation of the Australian real estate tech group up in 2021?
Why the Domain share price rose 10% in 4 days
It wasn’t that long ago that online classifieds stocks were at their lowest for three months. It was August 17 when Domain released its 2021 annual results.
Domain’s stock price fell despite news of a 20.8% jump in earnings before interest, taxes, depreciation and amortization (EBITDA) to $ 102 million. The digital service provider’s net profit jumped 66% year-over-year to $ 37.9 million.
Domain experienced strong growth in several of its profit segments. One of the major contributors has been its Core Digital Services unit which includes residential property listings; media, developer and commercial; and segments of data solutions for agents and properties.
Despite a drop on earnings day, the Domain share price climbed higher within 6 weeks of earnings. The continued strength of the Australian property market and a record interest rate certainly help.
The domain earns money from the ads on its website. This means that if the real estate market is hot, as it is now, business should be booming. A dynamic market is the result of a large purchase demand, and there are often sellers looking to profit from this by listing their places of sale.
As a result, the Domain share price is only 0.3% off a new 52 week high after a large market rebound that ended last week.
Shares of the Australian real estate tech and digital services group continued to have a strong run in 2021. Investors will be watching the real estate classifieds group closely when trading begins on Monday morning.