CoStar Group's stock tumbled 6.53% in post-market trading on Tuesday, following the release of its fourth-quarter earnings report and a significant analyst price target adjustment.
The real estate analytics firm reported quarterly results that presented a mixed picture. While CoStar's Q4 adjusted earnings per share of $0.31 surpassed the consensus estimate of $0.27, and revenue of $900 million beat expectations, its guidance for the first quarter disappointed investors. The company expects Q1 adjusted EPS of only $0.16 to $0.19, well below the $0.25 analysts were projecting.
The downward move was accelerated by investment firm Stephens, which sharply reduced its price target on CoStar to $70 from $105. Analyst commentary highlighted concerns over the company's aggressive spending on its Homes.com residential expansion and new AI initiatives, which are pressuring margins. Broader economic uncertainty is also weighing on demand across CoStar's commercial property platforms, contributing to the stock's decline.
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