CoStar Group's stock plummeted 10.10% in early trading on Wednesday, continuing a downward trend from the previous session.
The sharp decline is driven by the company's disappointing first-quarter guidance, which fell short of analyst expectations. Investor sentiment has been further pressured by CoStar's announcement that it plans to significantly increase spending on its Homes.com residential expansion and new artificial intelligence initiatives, raising concerns about near-term profitability.
Adding to the selling pressure, multiple Wall Street firms have slashed their price targets on CoStar. Analysts from RBC Capital, JPMorgan, Deutsche Bank, Wells Fargo, and Needham are among those who have reduced their targets, citing the weak outlook and worries over margin pressure from heightened investment spending.
Comments