Shares in the property classifieds group are surging right now.
The post The Domain (ASX:DHG) share price is up 10% in 4 days to a 52-week high. Here’s why appeared first on The Motley Fool Australia. –
The Domain Holdings Australia Ltd (ASX: DHG) share price has been on fire in 2021. Shares in the property technology and services business are up 27% this calendar year, including 10% gains since last Tuesday’s open.
So, what’s driving the Aussie property technology group’s valuation higher in 2021?
Why the Domain share price is up 10% in 4 days
It wasn’t long ago that shares in the online classifieds business were at a 3-month low. That was back on 17 August when Domain released its 2021 full-year results.
The Domain share price slipped despite reporting a 20.8% jump in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $102 million. Net profit for the digital services provider jumped 66% year over year to $37.9 million.
Domain reported strong growth across a number of its earnings segments. One big contributor was its core digital services unit which comprises residential property listings; media, developer and commercial; and agent and property data solutions segments.
Despite slipping on results day, the Domain share price has surged higher in the 6 weeks following the result. Continued strength in the Aussie property market and a record-low interest rate are certainly helping.
Domain makes money from the listings on its website. That means if the property market is hot, like it is right now, business should be booming. A hot market results from significant buying demand, and there are often sellers looking to cash in on that by listing their places for sale.
As a result, the Domain share price is now just 0.3% shy of a new 52-week high after a broad market rebound to finish last week.
Shares in the Aussie property technology and digital services group have continued to have a strong run in 2021. Investors will be watching the property classifieds group closely when trading kicks off on Monday morning.
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.