Industry News

Homestore and Barry Diller stocks get smacked

Online real estate leaders feel pain of mixed results

Investors on Wall Street are not being kind to the two purported leaders of online real estate: HomeStore and InterActiveCorp, which owns LendingTree, Domania, Realestate.com and recently acquired ServiceMagic. Since May, Homestore (Nasdaq: HOMS) stock has fallen more than 50 percent to $2.67 per share today after reaching nearly $6 per share at the end of April. InterActiveCorp (Nasdaq: IACI) reached a high of $39 in October of 2003, but is trading at $22.57 today. Earlier this week, HomeStore announced it likely will not achieve profitability this year, as some observers previously anticipated. The company narrowed its second-quarter loss to $4.3 million, or 3 cents a share, from $91.7 million, or 78 cents a share a year ago. The second-quarter loss compares with a loss of $5.1 million, or 4 cents a share in the first quarter this year. Although Homestore this week reported its second year-over-year quarterly increase in revenue, CEO Mike Long said the company doesn't expect pro...

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