Think Amazon for online shopping, Spotify for music, and in the Australian real estate scene, it's hard to go past Realestate.com.au owner REA Group Ltd (ASX: REA).

That is, until recently, anyway. Up until now, the only real competition to REA Group had been from Domain.com.au, but in reality, REA was wiping the floor with its smaller competitor.

There is the risk that might change now, however, with the US-based CoStar Group Inc (NASDAQ: CSGP) buying out Domain Holdings Australia Ltd in August for about $3 billion.

'Game on' says CoStar founder

CoStar Founder Andy Florence said at the time the company, which has a playbook of competing aggressively in new markets, was here to take the fight to the incumbent.

As he said:

For too long, agents, buyers and vendors have faced an unbalanced marketplace dominated by an intention to extract value rather than deliver it. Our vision is different. We are building a more compelling user experience at a lower cost – driving greater value for agents, vendors, and buyers alike. We are the agent's ally, and we will never operate at their expense.

But is REA Group's dominance really at risk?

If you ask the team at RBC Capital Markets, the answer is a resounding "no".

REA hard to beat

RBC has just initiated coverage of REA Group, and to their minds, the stock has a long way to run yet.

And what do they think of CoStar's chances?

In short:

We've seen CoStar's playbook when entering new markets and the outcomes in the US and UK residential property markets suggest CoStar is unlikely to materially disrupt REA.

They say CoStar lacks vital elements to be a serious disruptor, including an existing data platform, a differentiated pricing model, and a scale advantage.

CoStar's entry into Australia likely escalates marketing intensity, rather than price competition. REA's structural dominance via network effects (about 85% buyer engagement, about 72% website visits) and the vendor paid advertising model make meaningful disruption in Australia difficult.

The RBC team believe that REA Group will be able to maintain its pricing power despite CoStar's entry into the market, and continued property price inflation "should sustain low-teens yield growth in the medium term''.

So the real question – how much do they think the stock is worth?

The RBC team have started their coverage with an outperform rating and a price target of $270, a full 23.8% higher than where the shares closed on Monday. And don't forget the company also pays a modest dividend with a yield of slightly more than 1%, fully franked.

So while "safe as houses" might be a bridge too far, if the RBC team is to be trusted, you can probably rest easy with your money in REA Group shares.

The post Looking for a 20%-plus return? This ASX 20 real estate player is safe as houses. appeared first on The Motley Fool Australia.

Is it time to take profits on some of your shares?

On The Bull last week, experts identified five stocks that have had strong recent runs or reached record high prices in recent weeks.

They reckon these shares have run their course for the moment, and it may be time to lock in some of those gains.

Let's take a look.

Brokers call out 5 ASX 200 shares with limited growth ahead

Wisetech Global Ltd (ASX: WTC)

The biggest ASX 200 tech stock on the market has leapt 50% higher since 4 April, when US tariffs were causing a market spiral.

Tony Locantro from Alto Capital has a sell rating on Wisetech shares, commenting:

WiseTech was recently trading on a lofty price/earnings ratio of 124 times.

Share price strength creates an opportunity to lock in some profits.

Eagers Automotive Ltd (ASX: APE)

The Eagers Automotive share price rose to a record $22.67 last Thursday.

The ASX 200 consumer discretionary share has risen 73% in six months.

Arthur Garipoli from Seneca Financial Solutions has a sell rating on Eagers Automotive shares.

Garipoli explains:

APE's performance has been strong due to demand for electric vehicles. The company is well managed.

However, the company's price/earnings ratio is trading well above its long term average, so investors may want to consider locking in some gains.

Megaport Ltd (ASX: MP1)

Megaport shares are up 25% in six months and closed last week at $14.20.

Garipoli has a sell rating on the ASX 200 tech share, recommending investors consider taking profits.

He comments:

The company has guided to increasing revenue in fiscal year 2026 due to new products and greater market penetration via an increasing sales team.

However, in our view, it appears such a positive outlook has been priced into the stock.

Any delays or issues to fiscal year 2027 sales plans is likely to be punished by the market.

We suggest investors consider taking profits while the share price exhibits strength.

Nick Scali Ltd (ASX: NCK)

The share price of this ASX 200 furniture retailer is up 40% in six months.

The Nick Scali share price reached a fresh record high of $23.60 on Friday.

Locantro has a sell rating on Nick Scali due to economic uncertainty and a high stock price.

He comments:

At these levels, it may be a good time to pocket some profits given the potential for retail sector headwinds in Australia's high cost of living economy.

REA Group Ltd (ASX: REA)  

The REA share price has risen 13% in six months and closed last Friday at $263.16.

The ASX 200 property share hit an all-time peak of $276.64 in February.

Toby Grimm from Baker Young sees challenges ahead for REA and suggests selling while the stock trades above his valuation.

Grimm says:

REA's financial performance is increasingly driven by price increases rather than volume, in our view.

The Australian Competition and Consumer Commission is investigating REA Group's market power and subscription offerings.

US firm CoStar Group has acquired Domain, which should lead to more intense competition.

In our view, operational and regulatory risks present investors with an opportunity to exit a stock that was recently trading above our valuation.

The post Take profits now! Sell these 5 ASX 200 shares, say experts appeared first on The Motley Fool Australia.

Like Warren Buffett, my favourite holding period is forever.

Additionally, I prefer to hold a small portfolio of less than 10 stocks.

For me, such a mindset helps to encourage a focused approach.

By placing those conditions on myself, I'm forced to be particularly selective.

I need to make sure my research is thorough before I can back a company for the long run.

And while I must be convinced that I'm investing in a great business before I hand over my cash, my research doesn't end after purchasing the stocks.

I learnt the hard way that it pays to keep an eye on the companies I'm investing in.

That's another reason why I tried to keep my holdings to less than 10 stocks.

I don't have the capacity to monitor any more than that.

But sometimes things change.

And when the fundamentals of a business change, we need to reevaluate our position.

That's why I'm looking at selling my Domain Holdings Australia Ltd (ASX: DHG) shares.

Back in February, US real estate company CoStar Group Inc (NASDAQ: CSGP) announced its intention to wholly acquire Domain, buying up almost 17% of Domain's shares on market.

Domain's share price jumped by more than 40% on the back of the news.

Clearly, that was a big win for shareholders, particularly Nine Entertainment Co. Holdings Ltd (ASX: NEC) with its commanding stake in the real estate platform.

What next?

Domain's shareholders are set to vote on the offer in August.

It's likely the deal will go through, as Domain's board and largest shareholder have indicated their support for the CoStar takeover.

If the deal does go through, CoStar will pay $4.43 each for Domain's remaining shares.

With Domain shares currently trading at around $4.37, there is still some potential upside for investors.

Domain also announced it may pay shareholders a fully franked dividend of up to $0.10 per share.

Still, I didn't sign up for this.

I saw more potential in Domain and, like CoStar, I still do.

But the way things are heading, it looks like my time as a Domain shareholder is coming to an end.

I need to ask myself: Do I want to wait around until August to see if the deal goes through and collect a little bit more on top of the current share price?

Or could I put those funds to better work?

Opportunity cost

The CoStar deal negates my original investment thesis on Domain.

Clearly, the fundamentals have changed.

I see better opportunities on the market.

That's why I'm selling my Domain shares.

The post When is the best time to sell ASX shares? appeared first on The Motley Fool Australia.

Domain is an Australian digital property portal, best known for its website domain.com.au. It is the biggest competitor to REA Group Ltd (ASX: REA).

CoStar already owns 17% of Domain, which it acquired in February 2025 for $4.20. It will pay $4.43 for the remaining 83% of the business, valuing Domain at $3 billion. 

This offer represents a 42% premium to Domain's stock price when CoStar first approached Domain on 21 February. CoStar initially offered $4.20 per share before lifting its bid to the current price on 27 March. 

What is CoStar?

CoStar Group is a US real estate analytics provider founded in 1987 with a market capitalisation of $31 billion. In 2023, CoStar bid to acquire News Corporation's (ASX: NWS) Move business. News Corporation is the majority owner of REA Group.

Will the deal go through?

Domain shareholders are expected to vote on the offer in August. However, with the backing of both the company's board and its largest shareholder, Nine Entertainment Co Holdings Ltd (ASX: NEC), the deal is very likely to go through. 

Commenting on the transaction, Domain Chair and Non-Executive Director Nick Falloon said:

The Domain Board has carefully considered the CoStar proposal and believes it represents compelling value and a high degree of certainty for Domain shareholders, through the cash offer and limited conditionality.

This proposal is an endorsement of the strong fundamentals of Domain, and we are confident this position will be further strengthened with CoStar's support.

Nine Entertainment owns 60.1% of the ordinary Domain shares outstanding. It intends to vote all of the Domain shares it holds in favour of the Scheme. 

To get over the line, the Scheme requires the approval of more than 75% of votes cast by eligible shareholders and a majority of shareholders voting.

Has Domain been a good investment for shareholders?

Domain has been a very lucrative investment for Domain shareholders who invested at the beginning of the year. Domain shares are up 72% in 2025, significantly outpacing the S&P/ASX All Ordinaries Index (ASX: XAO), which is flat for the year. 

However, zooming out, Domain shares are up 48% over the past 5 years. This trails the All Ordinaries Index, which has risen 52% over the same period.

The post Domain shareholders rejoice after CoStar snaps it up for a large premium appeared first on The Motley Fool Australia.

Domain shareholders have enjoyed a surge in the company's stock value due to news of a looming takeover deal.

In February, US real estate company CoStar Group, Inc. (NASDAQ: CSGP) made an offer to acquire Domain valued at $4.20 per share.

Following news of the deal, the Domain share price jumped to $4.42 in early March, up around 70% from its price at the start of the year.

CoStar has since come back to the negotiating table with an offer of $4.43 per share.

CoStar told Domain that the offer represented its best and final price.

And Domain's board voted unanimously to engage with CoStar to facilitate due diligence.

Nine Entertainment Co. Holdings Ltd (ASX: NEC), Domain's majority shareholder, supports Domain's decision to proceed with the deal.

The media company, which owns about 60% of Domain, would collect about $1.4 billion if CoStar acquired Domain.

As CoStar conducts its due diligence, the Domain share price continues to recover after being swept up in recent market turbulence.

Domain shares are currently trading at around $4.06, having sunk to $3.82 as Trump's tariffs announcements took a toll on markets.

As such, CoStar's current offer price sits around 9% above Domain's market value.

Are Domain shares cheap?

Essentially, Domain's share price will be determined by what another party is willing to pay.

Taking this fundamental factor into account, and looking at CoStar's offer price of $4.43, Domain shares are currently cheap.

But I think Domain, with a market cap sitting around $2.6 billion, has looked cheap for a while now.

Back in late 2021, Domain shares were trading at around $6.

As such, CoStar's offer falls short of the highs the digital real estate company was achieving a few years ago.

And with REA Group Ltd (ASX: REA), Domain's key competitor and dominant player in the space, currently valued at around $31 billion, clearly there is scope for Domain to close that gap.

CoStar is well-equipped to shake up Australia's online real estate advertising market.

The US company, valued at around US$30 billion, has the funds and experience to do so.

It seems clear CoStar recognises the value in Domain and sees its potential to eat into REA Group's market share.

The post Are Domain Holdings shares undervalued? appeared first on The Motley Fool Australia.

Shares in the All Ordinaries Index (ASX: XAO) property listings company closed on Friday trading for $4.32. In morning trade on Monday, shares are changing hands for $4.30 apiece, down 0.2% at the time of writing.

For some context, the All Ords is down 1.3% at this same time.

What's been happening with the Domain share price?

As you're likely aware, the Domain share price has been on a tear since February.

Indeed, at $4.30 a share, the stock is up 70% so far in 2025.

Domain first got a sizeable boost when the company reported its half-year half-year results on 13 February. Highlights included a 7.4% year-on-year increase in revenue to $217.2 million. And net profit after tax (NPAT) was up 28.3% to $33.1 million.

But the Domain share price really got moving on 21 February, closing up 40.1% on the day.

This followed news of a takeover proposal the property listing company received from CoStar Group, Inc. (NASDAQ: CSGP). CoStar made an unsolicited, non-binding indicative offer of $4.20 cash per share, 35% above Domain's closing price on the prior trading day.

While that's well above the recent trading price, it's still well below the near $6 a share Domain was trading for in late 2021.

CoStar – a US$32 billion provider of online real estate marketplaces – also told Domain that it had acquired 16.9% of its shares for $4.20 apiece.

Nine Entertainment Co. Holdings Ltd (ASX: NEC) has around a 60% holding in Domain.

What's going on with CoStar's Domain takeover offer?

In an update this morning that's yet to boost the Domain share price today, the company said that it has entered into an exclusivity and process deed with CoStar for a cash consideration of $4.43.

CoStar lobbed the improved bid on 27 February.

Domain's directors confirmed that they intend to unanimously recommend Domain shareholders vote in favour of the offer.

Domain also said that CoStar will be granted access to a virtual data room to conduct due diligence, with an exclusivity period of four weeks, which may be extended by an additional two weeks.

Management stressed that CoStar's proposal remains subject to a number of conditions.

"There is no guarantee that a binding agreement will be reached and therefore no certainty that the CoStar Proposal will result in a transaction," they stated.

Should the takeover not go through, we could see a sizeable retrace in the Domain share price.

The post Up 70% this year, Domain share price wobbles on CoStar takeover update appeared first on The Motley Fool Australia.

The media company's financials were given a timely boost last week when the US real estate company CoStar Group, Inc. (NASDAQ: CSGP) announced its intention to wholly acquire Domain, buying up almost 17% of Domain's shares on the market.

The move saw Domain's share price jump by more than 40% in early trade last Friday.

With its 60% holding in Domain, Nine's financials were given a significant boost on the back of CoStar's takeover bid, with its share price climbing more than 10% since last week.

Domain's recent run has given Nine a welcome talking point to share with investors amid a barrage of less exciting news.

Nine posted a net profit after tax of $112.2 million for H1 FY25, down 25% on the prior corresponding period.

More encouragingly, the media company reported revenue for the same period of just under $1.4 billion, up 1% from H1 FY24.

As such, the 15% growth in Domain's EBITDA contribution to Nine added value beyond the media company's market cap.

It seems Nine is well aware of Domain's potential to keep delivering to the media group.

The company stated: "Domain continues to be a key part of Nine's media ecosystem and long-term growth strategy."

Clearly, as well as the potential to realise synergies with Domain and the wider group, Nine would be a far weaker entity without its real estate platform, particularly when pitted against its key competitor, News Corporation (ASX: NWS).

With a majority holding in REA Group Ltd (ASX: REA), which owns realestate.com, News Corp enjoys a commanding position in Australia's real estate advertising space.

Domain reported revenue of $217.2 million for H1 FY25, up 7.4% from the previous year, while REA Group posted revenues of $873 million over the same period, up 20% from the previous year. 

While those figures may suggest the gap is widening between the competitors, another metric tells a different story.

Domain stated it achieved a 7% uplift in site visits versus a 2% uplift for its major competitor when comparing the period from July to December 2024 (H1 FY2025) to January to June 2024 (H2 FY2024).

It appears CoStar founder and CEO Andy Florence, who built the $US30 billion real estate tech company, believes he can replicate his previous successes and further close that gap if his company gains control of Domain.

Will the deal go ahead?

That's the $2.7 billion dollar question.  

The Nine and Domain boards will be weighing up CoStar's $4.20 cash per-share offer.

Still, that does seem a bit cheap, particularly with Domain shares currently trading at around $4.40 and remaining a long way off the highs seen in 2021, when they were changing hands for more than $5.80.

So, is it too early to part ways with the golden goose?

It's looking that way.

The post Nine Entertainment's half year results buoyed by golden goose Domain Holdings appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are jumping:

Domain Holdings Australia Ltd (ASX: DHG)

The Domain share price is up 38% to $4.30. Investors have been fighting to get hold of the property listings company's shares after it received a $2.7 billion takeover offer from CoStar Group, Inc. (NASDAQ: CSGP). CoStar has made a non-binding offer of $4.20 cash per share, which represents a sizeable 34.6% premium to its last close price. The Domain board advised that it has commenced an assessment of CoStar's proposal.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is up 33% to $7.20. This morning, this pharmaceutical company revealed that it has accepted a takeover offer from Cosette Pharmaceuticals. The two parties have agreed a price of $7.40 per share, which represents a 36.8% premium to where the ASX 300 pharma stock last traded. Cosette Pharmaceuticals is a US based pharmaceutical company with a portfolio of products in women's health and dermatology. Management is recommending shareholders vote in favour of the transaction. This is in the absence of a superior offer and subject to the independent expert's report.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price is up 7.5% to $21.59. Investors have been buying this insurance giant's shares following the release of its full year results. QBE posted a 31.3% year on year increase in statutory net profit after tax to US$1.78 billion. This was driven by gross written premium growth of 3% and a combined operating ratio of 93.1%. In light of this strong result, the QBE board elected to boost its final dividend by 31% to 63 cents per share.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is up 14% to $30.18. This has been driven by the release of the pharmaceutical company's full year results following the market close on Thursday. Telix posted an impressive 56% increase in revenue to $783.2 million and a whopping 860% jump in profit after tax of $49.9 million. More strong growth is expected in FY 2025. Management is guiding to revenue of $1.18 billion to $1.23 billion for the year. This represents an increase of approximately 51% to 57%, respectively, year on year.

The post Why Domain, Mayne Pharma, QBE, and Telix shares are jumping today appeared first on The Motley Fool Australia.

In early trade, the property listings company's shares were up over 50% to $4.76.

Why are Domain shares roaring higher?

Investors have been bidding the company's shares higher today after it confirmed that it has received a takeover approach.

According to the release, the company has received an unsolicited, non-binding indicative proposal from CoStar Group, Inc. (NASDAQ: CSGP) to acquire 100% of its issued capital by way of scheme of arrangement.

CoStar is US$32 billion Nasdaq-listed provider of online real estate marketplaces, information and analytics. It owns and operates residential and commercial marketplaces in the United States.

The release reveals that CoStar Group has made an offer of $4.20 cash per share, which represents a sizeable 34.6% premium to its last close price.

Though, as with most transactions, the proposed price will be adjusted for any dividends declared or paid by Domain prior to completion of the proposed transaction. However, this does not include the 2 cents per share dividend that was announced with its half year results last week.

While this offer values Domain at a cool $2.7 billion, it is still well short of the market capitalisation when its shares were trading at around $6.00 back in 2021.

CoStar has advised Domain that it acquired 16.9% of its ordinary shares on 20 February 2025 at $4.20 per share. Clearly it is very serious with its offer.

What's next?

The release notes that implementation of CoStar's proposal is conditional on the two parties entering into an agreed scheme implementation agreement (SIA) on customary terms.

CoStar has stated that its entry into an SIA is subject to the following conditions:

there being no material adverse change to the business, assets (including any material asset acquisition or divestment), capital structure, affairs, prospects or financial performance of Domain; the satisfactory completion of confirmatory due diligence in respect of which it has requested exclusivity; unanimous approval of the Board of Directors of Domain; final internal Co-Star approvals to enter into the SIA; and execution of satisfactory binding transaction documents.

In addition, CoStar's expectation is that the agreement would be conditional on approval from the Foreign Investment Review Board (FIRB), but it does not need a financing condition.

Domain response

The Domain board advised that it has commenced an assessment of CoStar's proposal.

For now, shareholders do not need to take any action in relation to the proposal. It also warned that there is no certainty that the proposal will result in a transaction.

The REA Group (ASX: REA) share price is sinking on the news. It was down over 13% to $230.96 at one stage. There may be concerns that CoStar could fund an aggressive growth strategy for Domain and threaten REA's domination of the market.

The post Domain shares shoot 50% higher on big takeover news appeared first on The Motley Fool Australia.