Rightmove shares experienced a significant drop of over 25% following the company's announcement of increased investment in artificial intelligence. The property portal anticipates that this strategic pivot towards AI will lead to slower profit growth in 2026, with projections indicating revenue growth of 8-10% and underlying operating profit growth of 3-5%.
The company plans to allocate approximately £18 million to AI-related initiatives, including enhancements to its front-end user experience and a rebuilt back-end infrastructure. These upgrades aim to move the app beyond basic property searches and streamline processes for customers. While Rightmove reaffirms its 2025 guidance, the increased spending has sparked investor concerns about potential returns and margin dips.
The market has reacted negatively to Rightmove's plans, with analysts suggesting a 4-6% downgrade to consensus operating profit. The company's management views AI as central to their future strategy, seeking to accelerate execution and digitise more of the home buying and renting process. However, some investors remain sceptical about the benefits of these initiatives.
