The finale question, in the company's own words: what happens if the Homes.com spending doesn't win the market?
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✦ The bottom line
CoStar's core is safe. The risk is execution: years of spending on Homes.com that might not dislodge an entrenched leader.
↓ the brief below
✦ Teach me
Execution risk
The risk a strategy is sound on paper but fails in practice — the spending happens, results don't. CoStar is investing heavily to win home listings; if shoppers stick with the incumbent, the money is gone.
Wall Street calls this
Execution risk
Even great companies can pour cash into a market and fail to take it.
Risk in their words · resourced rivals
...competition may intensify, including from competitors that could have greater access to data, financial, product development, technical, analytic, or marketing resources than we do.
↳ Translated: the home-listings incumbent is big and well-funded too.