Rightmove shares plummet as bosses bet big on AI in major shake-up

Rightmove shares were in freefall on Friday morning after the property portal revealed its biggest strategy shake-up since it was founded in 2000.

The FTSE 100 group cut profit growth forecasts for next year to reflect a huge investment in artificial intelligence, and other changes bosses say will supercharge returns over the longer term.

Rightmove plans to invest £60million over the next three years, primarily in AI, with a target of driving top-line growth beyond 10 per cent by 2030.

Boss Johan Svanstrom, chief executive of Rightmove, said: ‘AI is now becoming absolutely central to how we run our business and plan for the future.

‘We are already working on a wide range of exciting AI-enabled innovations for the benefit of our partners and consumers, and see vast potential utilising our leading reach and connected data.

‘We are investing to accelerate our capabilities, which we are confident will create an even stronger platform and higher-growth business over time. We aim to further advance our leading digital position in the UK property ecosystem.’

Strategy shift: Rightmove spooks shareholders with AI push 

Rightmove now forecasts 2026 underlying operating profit growth of 3 to 5 per cent, slower than the 9 per cent growth at the end of the first half of 2025.

Revenue in 2026 is expected to grow at 8 and 10 per cent, reflecting a rate similar to 2025.

Rightmove shares plummeted 20.1 per cent to 524p in early trading, dragging them to a 15.4 per cent year-to-date loss. 

Managing director at RBC Capital Markets Anthony Codling warned Rightmove’s proposals ‘may be a case of two steps back to move three steps forward’.

He said: ‘When founded, Rightmove was in the right place at the right time. It harnessed our love of homes with a growing love of the internet creating a business where 2+2=5. Yes the group worked hard, but its timing blessed it with supernormal returns.

‘Once the train had left the station, the cash rolled in and the model worked on autopilot.

‘Previous management teams sat back and enjoyed sitting in the shade of the magic money tree they had the good fortune to tend to. However, times have changed, and the current management want to take Rightmove to a new level, to harness AI in the way that the founders harnessed the internet.

‘The pressure will be on management at today’s presentation to explain why now is the time to take a step back and shake up the money tree, how they will get the balance right between pruning to promote growth vs cutting too far, and why this is the right next move.’

Rightmove plans to embrace AI across three key areas; enhancing its consumer proposition, improving internal operational efficiency, and increasing research and development to unlock new growth opportunities

Comments from analysts at Peel Hunt suggest the sell-off in Rightmove shares on Friday may be overdone as they reiterated their ‘buy’ rating with a target price of 885p.

Peel Hunt said: ‘Despite pre-Budget noise around the housing market, Rightmove is set to deliver another year of stable growth in FY25.

‘We believe today’s investment announcement positions the business to stay ahead of the curve by enhancing its proposition and unlocking future monetisation potential.’

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