CBRE Group Inc's stock plummeted 5.14% during intraday trading on Thursday, extending recent losses for the commercial real estate services firm.
The sharp decline comes as investors continue to express concerns that artificial intelligence technology could disrupt the traditional high-labor-cost, high-commission intermediary service model that companies like CBRE rely on. This "AI panic" has spread to the commercial real estate sector, triggering a rare sell-off in property services stocks.
Adding to the pressure, CBRE reported fourth-quarter revenue that slightly missed analyst estimates, coming in at $11.629 billion compared to the expected $11.705 billion. While the company's core earnings per share beat expectations, the revenue shortfall combined with structural concerns about AI's long-term impact on the industry contributed to the stock's downward movement.