Subscribers saw 11x return on investment, CEO Andy Florance said in continued defense of Homes.com strategy after investor pushback.
The hedge fund Third Point was one of two major players that was strongly critical of CoStar’s attempt to compete with three leading residential real estate portals
"As discussed above, Zillow has the tools to stop; it is simply choosing not to," CoStar says in amended complaint over alleged copyright infringement.
Zillow has released AI mode, a new search assistant that answers buyers' and renters' listing and market questions.
Investment firm D.E. Shaw said that CoStar had changed the way it reported the performance of Homes.com amid questions about the portal's future.
CEO Andy Florance said Homes.com has the winning short- and long-term strategy after revealing that the company kept adding paid members in 2025.
The company has vowed to slash over 35 percent of its spending on Homes.com after years of attempting to build a fourth major real estate listings search portal.
CoStar debuted Homes AI on Tuesday, its home search assistant that guides homebuyers through Homes.com listings and proprietary market data with natural language. The tool will be added to other CoStar-owned sites later.
The parent company of the Homes.com real estate portal said the "investment phase" is over, and that selling or abandoning the site would be premature.
New York City-based hedge fund D. E. Shaw & Co. on Wednesday criticized the board's "reckless" spending on the portal while continuing to push back its timeline for profitability. It also called into question CEO Andy Florance's generous cash and equity incentive awards.
A day after a prominent hedge fund investor launched a hostile takeover bid of CoStar’s board over concerns about the real estate portal, CoStar doubled down on its Homes.com strategy.
A major New York hedge fund has called on CoStar to divest or shut down its residential real estate business after heavy spending on Homes.com.