The Real Brokerage: A Potential Next Palantir with 10x Returns Possible

The Real Brokerage (REAX) is a cloud-based brokerage offering digital tools to real estate agents, aiming to reduce commission rates and increase agent earnings. Despite the current slowdown in residential real estate transactions, the company is growing rapidly, with a 61% YoY increase in agents signed up and a 76% rise in revenue in Q1 2025. With a market capitalization of $350 billion and a P/S ratio above 100, Palantir Technologies (PLTR) may have limited future returns, but The Real Brokerage has the potential to put up 10x returns in the next few years.

The Real Brokerage (REAX), a cloud-based brokerage offering digital tools to real estate agents, has been making waves in the residential real estate market. Despite the current slowdown in transactions due to high interest rates, the company has shown remarkable growth, with a 61% year-over-year increase in agents signed up and a 76% rise in revenue in Q1 2025 [3].

The Real Brokerage aims to reduce commission rates and increase agent earnings by offering a digital brokerage and software tools. This innovative approach has attracted a significant number of agents, leading to a substantial increase in revenue. The company's revenue has grown by more than 10,000% since going public, making it one of the fastest-growing companies on the planet [3].

However, The Real Brokerage faces challenges. The company is not yet profitable and is close to breakeven, but it has shown strong potential for future growth. The Real Brokerage has a market capitalization of $823 million and a price-to-sales ratio (P/S) of 6.8 [3]. While this may seem high, it is not as extreme as Palantir Technologies (PLTR), which has a P/S ratio above 100 and a market cap of $350 billion [3].

The Real Brokerage's embrace of AI sets it apart. The company has launched Leo AI, a digital AI concierge for real estate agents to help with busywork around homebuying and selling. Over the long term, The Real Brokerage is working to build an AI-assisted real estate portal for clients, which could compete with Zillow Group [3].

Investors should be cautious, as The Real Brokerage is still in its early stages and faces risks. However, its fast growth and innovative approach make it a potential stock winner for those who buy shares. The company's ability to disrupt the real estate industry and its embrace of AI could lead to significant returns in the future.

References:
[1] https://finance.yahoo.com/news/3-reasons-avoid-reax-1-040650785.html
[2] https://www.gurufocus.com/news/2983702/topranked-coastline-real-estate-group-joins-real-reax-stock-news
[3] https://www.nasdaq.com/articles/under-radar-stock-could-be-next-palantir