Industry News

Homestore and Barry Diller stocks get smacked

Online real estate leaders feel pain of mixed results

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Investors on Wall Street are not being kind to the two purported leaders of online real estate: HomeStore and InterActiveCorp, which owns LendingTree, Domania, 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...