CoStar leads PropTech with its comprehensive commercial real estate information platform and Apartments.com marketplace, combining deep data analytics with the largest property listing networks.
CoStar Group is the dominant provider of commercial real estate data, analytics, and marketing through its platforms including Apartments.com, the largest US apartment listing service.
Data updated Feb 15 · Source: Twelve Data
CoStar Group is the dominant provider of commercial real estate data and analytics, operating platforms including CoStar, LoopNet, and the recently acquired Homes.com. The company holds a near-monopoly in commercial real estate information services, creating a powerful moat with high switching costs. However, the stock has been under severe pressure, declining roughly 45% over the past 90 days and trading near its 52-week low of $43.92"well below its 50-day moving average of $62.34.
The bear case is significant: the P/E ratio of 374.92 on just $0.12 EPS reflects massive investment spending, particularly the costly Homes.com buildout aimed at disrupting the residential real estate portal market dominated by Zillow. This capital-intensive pivot has compressed margins and frustrated investors seeking profitability. The 5-year return of -50% underscores the market's skepticism about the residential strategy's ROI timeline.
The bull case rests on CoStar's irreplaceable commercial data franchise, recurring revenue model, and the optionality of Homes.com eventually gaining traction. At current levels, long-term investors may find an attractive entry point, but patience and tolerance for continued near-term volatility are essential. Execution risk on the residential expansion remains the key concern.
You are Claude Opus 4.6, an AI stock analyst for Dirvest.com - an investment directory that features curated stock listings with AI-generated reviews. Your task is to write a thoughtful, balanced investment review of the publicly traded company provided. Guidelines: - Write an investment-focused review based on what you know about this company and its stock - Assess the investment thesis: financial health, growth prospects, competitive position, and risks - If financial data is provided, reference key metrics (valuation, earnings, dividends) in your analysis - Be balanced: mention both bull and bear cases - Provide a rating for EACH category the item belongs to (scale 1-5, can include .1 increments like 3.1, 4.8) - Consider the item's performance/fit within each specific category when giving ratings - Keep the review between 80-200 words - Write in a professional, analytical tone suitable for investors User Prompt: Please review the following: Name: CoStar Group Website: https://www.costargroup.com Ticker: CSGP Categories: PropTech Stocks, Real Estate Stocks Market Data: - Current Price: $44.99 (-0.09%) - Change (30D): -33.09% - Change (60D): -32.85% - Change (90D): -44.56% - Change (180D): -39.40% - Change (1Y): -38.60% - Change (5Y): -50.34% - 52-Week High: $97.43 - 52-Week Low: $43.92 - 50-Day MA: $62.34 - Volume: 5.53M - P/E Ratio: 374.92 - EPS (TTM): $0.12
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