Shares in Rightmove plunged sharply on Friday – falling by as a lot as 28% earlier than rebounding to finish the day down 12.3% – after the property‑portal introduced a serious ramp‑up in synthetic‑intelligence (AI) funding that can mood revenue development in 2026.
Rightmove’s plans to spend closely on synthetic intelligence on the expense of revenue development deterred traders and despatched shares within the property listings web site down, wiping greater than £1bn off its market worth.
Final week the property portal introduced that it’s growing a variety of synthetic intelligence initiatives aimed toward supporting property brokers.
Rightmove says these AI developments are designed to enhance effectivity, improve listings, streamline workflows, and supply smarter instruments for managing purchasers and leads.
Whereas particulars of all the person options are but to be revealed, the corporate says the developments will play a central function within the platform’s future.
Subsequent 12 months, Rightmove plans to speculate a further £12m on its revenue and loss account, alongside £6m on capital tasks, to advance its expertise and AI technique.
The £12m equates to roughly 4% of anticipated income and is anticipated to delay the achievement of some income development targets.
In a buying and selling assertion, Rightmove’s CEO, Johan Svanstrom, stated that AI will probably be “completely central” to the corporate’s operations. He outlined a multi-year partnership with Google Cloud aimed toward enhancing Rightmove’s information, AI, and platform capabilities.
The funding will give attention to areas together with AI-powered search, digital property valuations, and AI-enhanced operational processes, leveraging the huge quantities of knowledge the corporate has collected over time.
Regardless of the elevated spending, Rightmove reaffirmed its 2025 income steerage of round 9% development. Nevertheless, the corporate warned that underlying working revenue development is anticipated to gradual to 3-5% in 2026 as the brand new expertise investments start to take impact.
RBC Capital Markets analyst, Anthony Codling, stated: “When based, Rightmove was in the fitting place on the proper time. It harnessed our love of properties with a rising love of the web making a enterprise the place 2+2=5. Sure the Group labored exhausting, however its timing blessed it with tremendous regular returns.
” As soon as the prepare had left the station, the money rolled in and the mannequin labored on autopilot. Earlier administration groups sat again and loved sitting within the shade of the magic cash tree they’d the nice fortune to are likely to. Nevertheless, occasions have modified, and the present administration wish to take Rightmove to a brand new stage, to harness AI in the way in which that the founders harnessed the web.
“Rightmove income have, in the primary, grown every year, however these new proposals could also be a case of two steps again to maneuver three steps ahead. Present FY2026-28 consensus is forward of immediately’s steerage, the stress will probably be on administration at immediately’s presentation to clarify why now could be the time to take a step again and shake up the cash tree, how they may get the steadiness proper between pruning to advertise development vs slicing too far, and why that is the fitting subsequent transfer.”
Rightmove to roll out AI improvements for brokers
