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We recently published a list of These 10 Firms Were Battered by Dismal Earnings, Outlook Guidance. In this article, we are going to take a look at where CoStar Group, Inc. (NASDAQ:CSGP) stands against other worst-performing stocks on Wednesday.
A lackluster trading persisted on the stock market anew on Wednesday, with the three major indices finishing mixed, as investors digested news of the US economy’s contraction in the first quarter of the year, triggering fears of recession.
Among all major indices, only the Dow Jones and S&P 500 ended in the green, up 0.35 percent and 0.15 percent, respectively. In contrast, the tech-heavy Nasdaq dipped by 0.09 percent.
Ten companies also mirrored the wider market downturn, predominantly due to dismal earnings performance and tempered growth outlook for the remainder of the year.
In this article, we have named 10 of the worst-performing stocks on Wednesday and detailed the reasons behind their drop.
To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.
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CoStar Group, Inc. (NASDAQ:CSGP)
CoStar Group saw its share prices fall by 10.31 percent on Wednesday to finish at $74.17 apiece as investor sentiment was weighed down by a dismal earnings performance in the first quarter of the year.
In its latest earnings release, CoStar Group, Inc. (NASDAQ:CSGP) said it swung to a net loss of $14.8 million from a $6.7 million net income in the same period a year earlier, despite revenues jumping by 11 percent to $732.2 million from $656.4 million year-on-year.
The company said its net loss included a $31-million negative impact associated with its acquisition of Matterport.
Looking ahead, CoStar Group, Inc. (NASDAQ:CSGP) said it expects revenues to settle between $3.115 billion and $3.155 billion for the full year 2025, representing revenue growth of approximately 15 percent year-on-year at the midpoint of the range.
The company also expects the second quarter to grow by 14 percent to a range of $770 million to $775 million.
Overall, CSGP ranks 3rd on our list of worst-performing stocks on Wednesday. While we acknowledge the potential of CSGP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CSGP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.