Categories Technology

AppFolio (APPF) stock soars to record high on optimistic future

AppFolio Inc. (NASDAQ: APPF) stock soared to a record high of $116.47 as investors were positive about the company’s future. This comes on heels of an upbeat third-quarter 2019 earnings results.

The company is likely to turn beneficial next year backed by the industry-specific, cloud-based business software solutions that it provides to the real estate and legal markets. The analysts expect the real estate market to recover from this year’s weakness on the possibility of better interest rates.

Image for representation. Courtesy: Tierra Mallorca on Unsplash

The market has been sensitive to the interest rates and the Federal Reserve reacted with monetary policy easing. This has pushed the mortgage rates down from the previous year’s multi-year highs. Also, the market could slow as fears of recession and de-escalation in trade tensions could have an impact on the mortgage rates.

However, economists expect the US housing market to continue to slow in the coming years due to weak economic growth. This could turn favorable for the US homebuilders as lower mortgage rates will partially drive the residential construction activity higher. In contrast, the market remained concerned about the uncertainty stemming from the trade tariffs dispute.

Apart from this, the company relies on legal practices, cloud, data analytics, automation, artificial intelligence, and Website design for supporting growth. AppFolio continued its focus on the long-term strategy of providing software solutions to customers for achieving sustainable growth over the long term.

Read: VMware Q3 earnings review

For the third quarter, AppFolio reported a 10% drop in earnings due to higher costs and expenses despite a 36 jump in the top line. The company has focused on growing its revenue by increasing the size of its customer base in the markets, the number of units under management, introducing new or expanded Value+ services, retaining customers, and increasing the adoption and utilization of Value+ services by new and existing customers.

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