Industry News

Summer is bright for online real estate company

News analysis: Homestore climbs out of the shadows

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Homestore Inc., which operates several home-search Web sites, including Realtor.com, is an extreme example of the dot-com boom and bust: its stock price reached a high of $122.25 in January 2000 before free-falling to 29 cents in October 2002. But now the company appears to be rebounding from a murky past that has included management problems and accompanying legal and financial nightmares. Homestore's stock price, which started the day at $4.10, is a far cry from the glory days of the Internet gold rush, but it has more than doubled since June 27. And the company's stock price has jumped 60.2 percent since Aug. 4, based on second-quarter financial results that beat Wall Street expectations. Summer is typically the time of year when the real estate industry shines – home buyers are out in full force and home sales are generally strongest – and Homestore has had a big summer, too. On Aug. 5, Homestore announced that its second-quarter revenue reached a record $63.3 million...