eXp World Holdings - examining the profitability puzzle

EXPI was listed as a US cloud-based residential real estate brokerage. But its revenue and earnings are currently driven by its realtor business. This has experienced significant growth in the number of agents and revenue in the past five years, but signs of slowing growth are emerging.

This maturing realty business and its strong cash flow will enable the company to pursue its technology platform goal.

The market seems to be ascribing value to both the realty business and the technology platform.

When I dug deeper into the valuation, I found that the value of the realtor business does not provide a margin of safety, and the value of the technology platform is uncertain.