After making an impressive debut, Better Home & Finance (NASDAQ:BETR) has come crashing back down to earth. The home financing company turned many heads when it surged on its first day of trading after closing a merger with Aurora Acquisition. But since then, BETR stock has reversed course and is currently in a race to the bottom.
Even after rebranding from Better.com to its new post-merger name, this company has struggled to gain any real momentum following the initial hype. Now, BETR has dipped below the $1 mark, currently trading at penny stock levels. For the institutional investors who bet on it amid its first trading day, that’s highly discouraging.
Of course, Better Home isn’t necessarily destined to remain at these low levels. But it’s hard to be optimistic about its chances for a rebound, especially given the uncertainty hanging over the real estate market.
What’s Happening With BETR Stock?
Yesterday kicked off this new company’s first full trading week. So far, it hasn’t gone well. Despite an early morning surge, BETR stock is currently in the red by more than 10%.
Most people probably still equate Better.com with the firing scandal that made headlines late in 2021. The company’s founder and CEO Vishal Garg laid off 900 staff members via a single video conference call. This led to a significant outcry, earning the company plenty of bad press.
While Better is focused on trying to move on from that incident, it may have picked an unfortunate time to go public. Home sales have fallen for two consecutive months and housing affordability is the worst it has been since 2006. If the market continues to move in this direction, a crash could be coming. That would be the last thing a newly public company in the home financing space needs.
Today brings the release of the the June Case-Shiller home price index, an important indicator for the strength of the real estate market. As InvestorPlace’s Shrey Dua notes, the report will offer some important insight into the likelihood of a crash.
Although some real estate companies are rising today, BETR stock is still trending downward. All told, Better may have a difficult road ahead to get out of penny stock territory.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
