Goldman Sachs Gives Kudos to Homestore.com
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Shares of Homestore.com, Inc., popped higher on Tuesday after the online real-estate web site was lauded by Goldman Sachs.
The report elevated the real estate marketplace's rating from Market Outperform (MO) to Recommended List (RL).
The reason for the improved rating is attributed to Homestore.com's "consistent growth via strong fundamentals as the clear market leader; three diverse revenue streams that provide solid visibility, 'limited' economic experience and significant upside potential; and benefits of significant lifetime value of subscribers further supports an increasing value proposition of the platform," according to the GS report.
The report additionally cites that Homestore.com has shown six consecutive quarters in which it exceeded estimates, a 34 percent compounded quarterly growth rate in revenue over that period, cash break-even in in third quarter 2000 and a 4 cent increase in earnings per share for the fourth quarter of last year.
"Revenue per subscriber has increased to $1,144 per year from $481 per year in 1999, with subscribers growing to 145,000 in fourth quarter, 2000, from 63,0000 in first quarter, 1999," the report noted. "Homestore has three times the listings and traffic of its nearest competitor and garners 64 percent of eyeball minutes in the category."
At press time, the company's stock Homestore.com's family of sites includes REALTOR.com, HomeBuilder.com,
HomeFair.com and CommercialSource.com.
was trading at 31 63/64, up 5 3/64, an
18.74 percent change.
Homestore.com's family of sites includes REALTOR.com, HomeBuilder.com, HomeFair.com and CommercialSource.com.