CoStar Group (CSGP) will exit the Nasdaq-100 index on May 18, 2026. Lumentum Holdings Inc. will replace the company in the index. This removal follows a nearly 57% decline in CoStar's market value over the past year.
Passive investment funds tracking the index are expected to create selling pressure on the stock. Investors have focused concerns on the company's costly strategy for its Homes.com residential platform and broader capital allocation decisions.
CoStar authorized a new $1.5 billion share repurchase program to address shareholder concerns. The company also plans to moderate its investment in Homes.com while maintaining its strong core commercial real estate business.