Rightmove Shares Plunge Amid AI Spending Warning
Rightmove's stock plummeted nearly 30% after revising its 2026 profit growth forecast downward to 3%-5%, a stark contrast to this year's projected 9% increase. The UK property portal attributed the guidance cut to heavy investments in AI-driven tools for estate agents and consumer platforms.
The selloff briefly pushed shares to a yearly low before bargain hunters tempered losses. Analysts remain unsettled, with UBS downgrading the stock and warning of potential 5%-19% reductions to 2028 profit estimates. The abrupt shift challenges Rightmove's reputation as a stable, predictable performer.
This comes amid broader market skepticism about whether AI investments justify their costs across sectors. The property tech firm is overhauling agent tools and consumer interfaces, betting automation can streamline transactions—a gamble now testing investor patience.
