CoStar Group’s Stock Slides 36% as Homes.com Investment Erodes Profit
In Q4 2025, CoStar Group’s share price plunged 36.1% over three months and 25.2% over one month, closing at $49.07 on Feb. 19 due to heavy Homes.com platform spending. Underwhelming Apartment.com bookings and reports of Google entering home listings further pressured profitability and investor sentiment.
1. Q4 Share Price Performance
CoStar Group’s stock closed at $49.07 on February 19 after a three-month decline of 36.1% and a one-month drop of 25.2%, reflecting intense investor concern over recent strategic shifts and profitability pressures. The company’s market capitalization stands at $20.797 billion.
2. Elevated Homes.com Spending Weighs on Margins
Aggressive capital deployment into the Homes.com residential real estate platform drove up marketing and development expenses, sharply reducing near-term operating margins. Elevated spending levels have emerged as the primary headwind to earnings growth in the fourth quarter.
3. Apartment.com Shortfall and Competitive Concerns
Apartment.com bookings fell short of internal forecasts, compounding margin strain and dampening investor sentiment. Late-quarter reports of Google preparing to enter the for-sale home listings market added competitive uncertainty and valuation pressure.