Here’s Why CoStar Group (CSGP) Traded Lower in 2025

1 week ago 5

Soumya Eswaran

Tue, January 27, 2026 astatine 6:22 AM CST 4 min read

Investment absorption company Vulcan Value Partners recently released its fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. All the strategies of Vulcan Value Partners delivered affirmative results successful the year. The Large Cap Composite (Net) returned -1.5% successful Q4 and 7.9% YTD, the Small Cap Composite (Net) gained 3.2% successful Q4 and 9.5% YTD, The Focus Composite (Net) retuned 0.1% successful Q4 and 7.1% YTD, Focus Plus Composite (Net) returned 0.1% successful Q4 and 6.2% YTD and the All-Cap Composite (Net) returned 1.3% successful Q4 and 10.7% YTD. Despite overvalued markets, the steadfast improved its price-to-value ratios portion inactive achieving affirmative returns, prioritizing information and semipermanent gains implicit short-term performance. This concern echoes the precocious 1990s dot-com bubble, wherever hype and precocious valuations led to a crash, and today’s AI disruptions look to reflector that pattern, with investors risking overpaying for promising businesses. The steadfast is addressing specified situations by sticking to its concern discipline. For much accusation connected the firm’s champion picks successful 2025, delight cheque its apical 5 holdings. In addition, delight cheque the firm’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Vulcan Value Partners highlighted CoStar Group, Inc. (NASDAQ:CSGP) arsenic a notable detractor wrong its Focus Plus Strategy. CoStar Group, Inc. (NASDAQ:CSGP) is an information, analytics, and online marketplace services supplier for commercialized and residential spot markets. CoStar Group, Inc. (NASDAQ:CSGP) shares traded betwixt $57.01 and $97.43 implicit the past 52 weeks. On January 26, 2026, CoStar Group, Inc. (NASDAQ:CSGP) banal closed astatine $65.81 per share. One-month instrumentality of CoStar Group, Inc. (NASDAQ:CSGP) was -3.02%, and its shares mislaid 15.88% of their worth implicit the past 3 months. CoStar Group, Inc. (NASDAQ:CSGP) has a marketplace capitalization of $27.89 billion.

Vulcan Value Partners stated the pursuing regarding CoStar Group, Inc. (NASDAQ:CSGP) successful its 4th fourth 2025 capitalist letter:

"CoStar Group, Inc. (NASDAQ:CSGP) is simply a premier accusation services supplier to the commercialized and residential existent property industries. It sells entree to ngo captious information and accusation assets, supported by a mostly recurring, subscription-based gross model. For the past fewer years, we person watched the halfway businesses nether the CoStar umbrella bask coagulated double-digit gross maturation on with accordant borderline expansion, each successful enactment with our expectations. That said, astatine the endeavor level, margins person contracted importantly owed to the company’s ample and persistent concern successful Homes.com. We volition ever enactment and adjacent promote our companies to reinvest implicit and supra what is required into their concern to some widen the duration of their maturation and to support their moats. However, the moat wrong CoStar has ever resided successful its commercialized products, not successful its residential endeavors. Therefore, we person viewed immoderate occurrence from Homes.com arsenic axenic optionality for immoderate clip and person attributed nary worth to this asset. The results of the company’s residential efforts person fallen dramatically abbreviated of its semipermanent expectations provided years ago. Despite its constricted occurrence to date, the institution has provided mean word targets indicating that its non-core, residential efforts volition proceed to beryllium nonaccomplishment making for galore years to come. We are successful the process of evaluating this caller information."