CoStar's Core Network Runs at 47% Margins. Is Homes.com Still Driving the Discount?

CoStar Group (NASDAQ: CSGP), which runs one of the leading data and marketplace platforms for commercial real estate (CRE), has seen its stock cut nearly in half during the past six months. Investors are focused on the company's residential mess, but its commercial core remains intact. Some of the best businesses you will find are built on self-reinforcing networks. Visa (NYSE: V) and Mastercard (NYSE: MA) are obvious examples of network effects in action. Merchants need cardholders, cardholders need merch ...