Hi guys , I’m buying the dip on CoStar. Here is why:
They own the "Bloomberg" of Commercial Real Estate. It’s essential infrastructure, not just a service so their Moat is real !The market hates the spend they did with Homes but I love the strategy. They are disrupting the residential model by putting agents first.
CoStar operates as a high-margin data-as-a-service monopoly with a massive economic moat derived from its proprietary database of verified CRE transactions and unparalleled operational leverage that scales as they successfully integrate residential marketplace assets into their recurring revenue engine.
**Fundamentals are great plus they had** 60+ quarters of double-digit growth, zero debt, and massive operational leverage.
At those prices the market is pricing them like a declining legacy business; I’m buying them as the future infrastructure of the entire real estate sector. The long-term upside vs the current sentiment is in my opinion a no brainer.