Rocket Companies to buy real estate firm Redfin in $1.75B deal

Given the high premium for Redfin in the acquisition and the anticipation of synergistic benefits from combining both companies' technologies, Redfin's stock might see continued strength as investors are optimistic about future growth. Conversely, Rocket's shares may initially decline as the market digests the impact of the acquisition and the initial drop in its stock price. Overall, the potential boost to Rocket’s business model through the acquisition could provide a positive long-term perspective.

Rocket's stock price has fallen significantly in reaction to the announcement. While the acquisition might provide long-term benefits, initial market reactions suggest skepticism about the deal's immediate impact and the cost. Investors might be cautious as Rocket takes on Redfin's challenges along with its assets. Thus, short-term performance might lag.