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CoStar vs Zillow: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

CoStar Group Inc (CSGP)

Q3 2026
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CoStar Q3: Growth Offsets Guidance Cut and CFO Exit

  • Strong Q2 results and first residential profit CoStar's Q2 revenue jumped 18% and adjusted EBITDA doubled to $184M. The residential segment turned its first profit, with Homes.com revenue up 66%, showing the bet on residential real estate is starting to pay off.

    This shows the core business is growing and the residential pivot is gaining traction, a key positive for the stock.

  • Strategic acquisitions and AI partnership CoStar acquired Wikicasa and Zonda to expand data and advertising reach, and partnered with OpenAI. Insider buying of $2.5M also signaled confidence, supporting the growth story.

    These moves expand CoStar's capabilities and show insider belief, which can boost investor sentiment.

  • CFO exit, downgrade, and weak guidance The CFO's sudden departure, a Baird downgrade, a Q2 revenue miss, and soft Q3 and full-year guidance pressured shares. Delayed Homes.com profitability to 2029 added to concerns about execution.

    These events directly hurt investor confidence and raised questions about management and future performance.

  • Weak commercial real estate demand CoStar projected a 63% drop in commercial deliveries and soft demand, weighing on its core data business. This reflects broader challenges in commercial real estate that could limit growth.

    The core commercial business faces headwinds that may offset gains elsewhere.

August 2026
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CoStar buys growth, but weak guidance and falling demand data weigh

  • CoStar expands abroad and into new homes with deals CoStar bought 30% of Italy's Wikicasa and closed its $800 million Zonda purchase, adding new-home data and marketplaces. These deals widen its data and advertising reach, supporting future revenue, though the cash outlay is large.

    Two acquisitions are the period's main expansion moves and affect CSGP's growth outlook.

  • Residential arm turns first profit as Homes.com grows CoStar's residential segment posted its first profitable quarter, with adjusted EBITDA of $12 million and Homes.com revenue up 66% to $28.5 million. It named a new Homes.com president. This shows the costly residential bet is starting to pay off.

    First residential profit is a key new milestone for CSGP's biggest investment area.

  • Weak guidance and soft demand data drag the stock CoStar missed revenue and gave the weakest full-year guidance among data peers. Its own indices projected a 63% drop in commercial deliveries and slightly negative demand, sending shares down 3.8%. Weak commercial real estate activity cuts demand for its core data.

    Weak guidance and falling demand data are the main negative forces on CSGP's price.

  • AI partnership and insider buying signal confidence Apartments.com was featured in OpenAI's GPT-6 demo, with ChatGPT referral traffic up nearly 40%. CEO Andrew Florance bought $2.5 million of stock near lows. These signal new demand channels and management confidence despite the weak share price.

    AI distribution and insider buying are notable new confidence signals for CSGP.

Latest
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CoStar buys growth, but weak guidance and falling demand data weigh

  • CoStar expands abroad and into new homes with deals CoStar bought 30% of Italy's Wikicasa and closed its $800 million Zonda purchase, adding new-home data and marketplaces. These deals widen its data and advertising reach, supporting future revenue, though the cash outlay is large.

    Two acquisitions are the period's main expansion moves and affect CSGP's growth outlook.

  • Residential arm turns first profit as Homes.com grows CoStar's residential segment posted its first profitable quarter, with adjusted EBITDA of $12 million and Homes.com revenue up 66% to $28.5 million. It named a new Homes.com president. This shows the costly residential bet is starting to pay off.

    First residential profit is a key new milestone for CSGP's biggest investment area.

  • Weak guidance and soft demand data drag the stock CoStar missed revenue and gave the weakest full-year guidance among data peers. Its own indices projected a 63% drop in commercial deliveries and slightly negative demand, sending shares down 3.8%. Weak commercial real estate activity cuts demand for its core data.

    Weak guidance and falling demand data are the main negative forces on CSGP's price.

  • AI partnership and insider buying signal confidence Apartments.com was featured in OpenAI's GPT-6 demo, with ChatGPT referral traffic up nearly 40%. CEO Andrew Florance bought $2.5 million of stock near lows. These signal new demand channels and management confidence despite the weak share price.

    AI distribution and insider buying are notable new confidence signals for CSGP.

July 2026
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CoStar's CFO exit and weak Q2 bookings overshadow solid revenue growth

  • CFO departure and analyst downgrade CoStar's CFO left suddenly, and Baird downgraded the stock, citing concerns about near-term momentum and disappointing net bookings. This management shake-up makes investors nervous about the company's direction, pushing the stock down.

    This is a new event that directly triggered a sharp stock drop and reflects underlying concerns about the company's performance.

  • Q2 revenue miss and weak Q3 guidance CoStar reported Q2 revenue that missed expectations and gave Q3 revenue guidance below consensus. This suggests the company's growth is slowing more than expected, which is why the stock tumbled 15% after the report.

    This is the latest earnings result and guidance, a key new development that directly impacts investor expectations.

  • Homes.com profitability delayed to 2029 CoStar said its Homes.com site won't cover its costs until 2029, meaning it will keep losing money for years. Investors worry about the cash burn, contributing to the stock's 58% year-to-date decline.

    This is a new disclosure about the timeline for profitability, a major factor in the stock's poor performance.

  • Strong Q2 revenue growth and doubled EBITDA Despite the miss, CoStar's Q2 revenue grew 18% year-over-year, and adjusted EBITDA more than doubled to $184 million. This shows the core business is still growing and becoming more profitable, which could support the stock longer term.

    This is a new positive data point from the earnings report that provides a counterweight to the negative news.

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CoStar's CFO exit and weak Q2 bookings overshadow solid revenue growth

  • CFO departure and analyst downgrade CoStar's CFO left suddenly, and Baird downgraded the stock, citing concerns about near-term momentum and disappointing net bookings. This management shake-up makes investors nervous about the company's direction, pushing the stock down.

    This is a new event that directly triggered a sharp stock drop and reflects underlying concerns about the company's performance.

  • Q2 revenue miss and weak Q3 guidance CoStar reported Q2 revenue that missed expectations and gave Q3 revenue guidance below consensus. This suggests the company's growth is slowing more than expected, which is why the stock tumbled 15% after the report.

    This is the latest earnings result and guidance, a key new development that directly impacts investor expectations.

  • Homes.com profitability delayed to 2029 CoStar said its Homes.com site won't cover its costs until 2029, meaning it will keep losing money for years. Investors worry about the cash burn, contributing to the stock's 58% year-to-date decline.

    This is a new disclosure about the timeline for profitability, a major factor in the stock's poor performance.

  • Strong Q2 revenue growth and doubled EBITDA Despite the miss, CoStar's Q2 revenue grew 18% year-over-year, and adjusted EBITDA more than doubled to $184 million. This shows the core business is still growing and becoming more profitable, which could support the stock longer term.

    This is a new positive data point from the earnings report that provides a counterweight to the negative news.

Zillow Group Inc Class C (Z)

Q3 2026
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Zillow's AI push and legal wins offset by competition and layoffs

  • AI platform launch and legal settlement Zillow launched Zillow Pro, an AI agent platform, nationwide and settled FTC antitrust claims, removing a major legal cloud. These moves strengthen its technology edge and reduce regulatory risk.

    Highlights key positive developments that could boost investor confidence.

  • Strong financials and buybacks Zillow reported $46 million net income, 73% gross margin, and $626 million in buybacks, showcasing its capital-light model's profitability and commitment to returning cash to shareholders.

    Demonstrates financial health and shareholder value, supporting the stock.

  • Competitive and operational pressures Google's nationwide listings, a 2% traffic decline, and monthly users dropping to 239 million raised fears of competitive erosion. Rising mortgage rates and 500 layoffs also spooked investors, sending shares down 11%.

    Explains the main negative forces that drove the stock lower during the quarter.

  • Expanded partnerships and rent reporting New partnerships with Pinterest and Realtor.com expanded data monetization, and the rent reporting program hit a record 78,000 renters, opening new revenue streams and deepening user engagement.

    Shows growth initiatives that could offset competitive pressures.

August 2026
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Zillow's legal cloud lifts, but Google and weak traffic hit the stock

  • Google's national real estate listings threaten Zillow's traffic Google now shows home listings in all 50 states, a direct competitive threat. Zillow's Q2 report also showed mobile and site traffic fell 2% and monthly users dropped to 239 million. Investors fear Google could siphon off buyers and agents, pressuring Zillow's core advertising business.

    This is the main new competitive threat that drove the stock down 13% after earnings.

  • FTC settlement removes antitrust overhang Zillow settled FTC claims over its $100 million Redfin deal, ending the agreement that kept Redfin out of rental listings. Redfin must rebuild its rental ad business within six months, which could add competition. But the settlement removes a major legal uncertainty that had weighed on the stock for months.

    This resolves the key regulatory risk that had been a drag on the stock and was a major overhang.

  • New partnerships expand Zillow's reach and data monetization Zillow partnered with Pinterest to use its real estate data for ad targeting, and with Realtor.com to launch Preview, a pre-market listing feature. These deals put Zillow's listings and data in front of more buyers and advertisers, potentially boosting engagement and revenue over time.

    These are new growth initiatives that could offset competitive pressures and drive future revenue.

  • Rent reporting program gains traction, supporting rentals ecosystem Zillow reported a record 78,000 renters building credit through its rent reporting program in July, up 26% from a year ago. The program helps renters improve credit scores, which could create future homebuyers and deepen engagement with Zillow's rental platform.

    This shows growing adoption of a service that strengthens Zillow's rentals business and long-term customer pipeline.

Latest
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Zillow's legal cloud lifts, but Google and weak traffic hit the stock

  • Google's national real estate listings threaten Zillow's traffic Google now shows home listings in all 50 states, a direct competitive threat. Zillow's Q2 report also showed mobile and site traffic fell 2% and monthly users dropped to 239 million. Investors fear Google could siphon off buyers and agents, pressuring Zillow's core advertising business.

    This is the main new competitive threat that drove the stock down 13% after earnings.

  • FTC settlement removes antitrust overhang Zillow settled FTC claims over its $100 million Redfin deal, ending the agreement that kept Redfin out of rental listings. Redfin must rebuild its rental ad business within six months, which could add competition. But the settlement removes a major legal uncertainty that had weighed on the stock for months.

    This resolves the key regulatory risk that had been a drag on the stock and was a major overhang.

  • New partnerships expand Zillow's reach and data monetization Zillow partnered with Pinterest to use its real estate data for ad targeting, and with Realtor.com to launch Preview, a pre-market listing feature. These deals put Zillow's listings and data in front of more buyers and advertisers, potentially boosting engagement and revenue over time.

    These are new growth initiatives that could offset competitive pressures and drive future revenue.

  • Rent reporting program gains traction, supporting rentals ecosystem Zillow reported a record 78,000 renters building credit through its rent reporting program in July, up 26% from a year ago. The program helps renters improve credit scores, which could create future homebuyers and deepen engagement with Zillow's rental platform.

    This shows growing adoption of a service that strengthens Zillow's rentals business and long-term customer pipeline.

July 2026
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Zillow's AI push and buybacks offset legal and rate pressures

  • Capital-light model and buybacks Zillow's asset-light model delivered $46M net income, 73% gross margin, and $626M in buybacks, contrasting with Opendoor's struggles. This financial strength supports investor confidence.

    Highlights a key positive financial performance that drove sentiment.

  • Nationwide AI agent platform launch Zillow Pro, an AI agent platform, launched nationwide, deepening agent integration and potentially boosting efficiency and revenue. This innovation could strengthen Zillow's competitive position.

    Shows a new growth initiative that could impact future earnings.

  • Legal risks persist An antitrust hearing over listing access could yield an injunction, and securities fraud class actions allege Zillow misled investors about its Redfin deal. These legal overhangs weigh on the stock.

    Ongoing legal issues are a significant negative factor affecting Zillow's price.

  • Mortgage rates and layoffs spook investors Rising mortgage rates hit 11-month highs, squeezing affordability and listings. Despite a Q2 beat, 500 layoffs, an expanded CFO role, and an 11% stock drop spooked investors.

    Macro headwinds and internal changes negatively impacted investor sentiment.

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Zillow's legal cloud persists as Q2 beats and layoffs hit

  • Securities fraud class action over Redfin deal A new class action claims Zillow misled investors by calling its $100 million Redfin payment a partnership instead of an anticompetitive acquisition. This keeps legal costs and uncertainty high, weighing on the stock.

    This is a new lawsuit filing that adds to Zillow's legal overhang and directly pressures the stock.

  • Zillow report: 300,000 vacant lots could ease housing shortage Zillow's own data shows over 300,000 vacant lots for sale, enough to cut the U.S. housing shortage by 6.3% if built on. This highlights Zillow's role in the land market and could draw more listings and users.

    It shows a potential demand driver for Zillow's platform and positions the company as a housing market problem-solver.

  • Mortgage rates hit 11-month high, affordability worsens Rising mortgage rates and record home prices are squeezing buyers, with new listings falling to their lowest since December. Fewer transactions mean less revenue for Zillow's marketplace and mortgage businesses.

    It explains a key external headwind that reduces home-buying activity and directly affects Zillow's revenue.

  • Q2 earnings beat, but layoffs and CFO role expansion spook investors Zillow beat revenue and profit estimates, yet announced 500 layoffs and gave the CFO added COO duties. The stock fell 11% as investors worried about cost cuts and management changes despite strong results.

    It captures the latest earnings surprise and the market's negative reaction, which is central to why the stock moved.

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Zillow's legal cloud persists as AI agent platform launches

  • Antitrust hearing heats up A Chicago federal judge heard fiery testimony from Compass and MRED CEOs over Zillow's listing access. A ruling on arbitration could lead to a preliminary injunction, threatening Zillow's business practices and keeping legal costs high.

    This is the latest development in the ongoing antitrust case, a major overhang on the stock.

  • Securities fraud deadline nears Investors were reminded of the August 10 lead plaintiff deadline in a class action alleging Zillow misled about its Redfin deal. The lawsuit, tied to past stock drops, adds to legal uncertainty and potential financial penalties.

    This is a new reminder of an ongoing legal issue that weighs on investor sentiment.

  • Capital-light model shines Zillow's high-margin, asset-light platform contrasts sharply with Opendoor's cash-burning model. With $46 million net income, 73% gross margin, and $626 million in buybacks, Zillow looks like a cleaner investment, which could attract buyers.

    This highlights Zillow's financial strength relative to a competitor, a positive for the stock.

  • AI platform for agents goes nationwide Zillow launched Zillow Pro, an AI-powered tool for all agents, even non-advertisers. This deepens agent integration and could boost engagement and leads, supporting future revenue growth and strengthening Zillow's competitive position.

    This is a new product launch that could drive growth and improve Zillow's ecosystem.

Q2 2026
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Zillow hit by multiple securities class actions over Redfin deal

  • Securities class actions pile up over Redfin deal Multiple law firms filed class actions alleging Zillow misled investors by calling its Redfin deal a partnership when it was really an acquisition, hiding antitrust risk. This legal overhang can mean higher costs, management distraction, and potential fines, weighing on the stock.

    This is the main new event of the period and directly explains negative pressure on Z's price.

  • Bed Bath & Beyond enters real estate, adding competition Bed Bath & Beyond is buying Fathom Holdings for $53 million to create a full homeownership platform, putting it in direct competition with Zillow and Redfin. More competition could pressure Zillow's market share and pricing power over time.

    This is a new competitive threat that could affect Zillow's future growth and profitability.

June 2026
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Zillow hit by multiple securities class actions over Redfin deal

  • Securities class actions pile up over Redfin deal Multiple law firms filed class actions alleging Zillow misled investors by calling its Redfin deal a partnership when it was really an acquisition, hiding antitrust risk. This legal overhang can mean higher costs, management distraction, and potential fines, weighing on the stock.

    This is the main new event of the period and directly explains negative pressure on Z's price.

  • Bed Bath & Beyond enters real estate, adding competition Bed Bath & Beyond is buying Fathom Holdings for $53 million to create a full homeownership platform, putting it in direct competition with Zillow and Redfin. More competition could pressure Zillow's market share and pricing power over time.

    This is a new competitive threat that could affect Zillow's future growth and profitability.

▼2

Zillow hit by multiple securities class actions over Redfin deal

  • Securities class actions pile up over Redfin deal Multiple law firms filed class actions alleging Zillow misled investors by calling its Redfin deal a partnership when it was really an acquisition, hiding antitrust risk. This legal overhang can mean higher costs, management distraction, and potential fines, weighing on the stock.

    This is the main new event of the period and directly explains negative pressure on Z's price.

  • Bed Bath & Beyond enters real estate, adding competition Bed Bath & Beyond is buying Fathom Holdings for $53 million to create a full homeownership platform, putting it in direct competition with Zillow and Redfin. More competition could pressure Zillow's market share and pricing power over time.

    This is a new competitive threat that could affect Zillow's future growth and profitability.