Rightmove Shares Tumble 12% After AI Investment Announcement

Rightmove's shares tumbled nearly 30% before settling at a 12.3% decline last week after the British portal operator announced that profits would be hit by a hefty investment in AI in 2026.

Rightmove's market update, published last week, spooked investors who were advised that it would invest around £12 million in artificial intelligence, consumer tools, and platform innovation. According to the market, Rightmove was worth £1 billion less on Friday than it was on Thursday.

The £12m investment is circa 4% of Rightmove's forecasted profits next year, and will also delay some of the company's revenue growth targets. Rightmove now forecasts increased profitability of between 3-5% in 2026.

Rightmove CEO Johan Svanström said last week:

“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 in 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.”

While profitability will face a hit, the direction of travel means the announcement was somewhat inevitable—a lot of money is being poured into AI around the world, and a business of Rightmove's size has little choice in the matter.

Rightmove must now deliver quality results on initiatives including AI search, digital property valuations, and better operational processes.

The most recent full-year profitability numbers for Rightmove are for 2024, when the company recorded operating profits of £256.3 million.