Rightmove Shares Drop 7% After JP Morgan Advises Investors to Sell

January 18, 2024
Share this Post: 

Shares in UK number one Rightmove have tumbled by as much as 7% in the past 48 hours—one of the biggest drops on the stock market—after America's largest bank told investors to divest from the portal.

Share prices fell from 564.2p on 16 January to 522.2p this morning after JP Morgan advised shareholders to sell their shares as a response to the CoStar Group's entry into the UK market.

However, the dip is a drop in the ocean compared to October's share price stumble when CoStar's GBP 100M bid for OnTheMarket became public; shares hit a two-year low to 459.0 pence on 21 October.

JP Morgan analysts believe Rightmove has underestimated the ramifications of CoStar's purchase of OnTheMarket, the likely destabilisation of Rightmove's main competitor Zoopla, and the costs involved in retaining its market leadership position.

OnTheMarket has already been promised a marketing budget of £46.5M this year alone—more than three times Rightmove's current media spend.

Should Rightmove accept the challenge, the reality for shareholders is that there will be less cash available for historically generous share price growth and end-of-year profits, which would likely impact dividends.

For a closer look at the context behind the so-called "The War on Zillow and Rightmove" (coined by yours truly), Edmund's analysis published this week is an excellent read.

Read more

What Does the Future of Real Estate Search Look Like?
Partnerships Roundup: Rightmove, OLX Group
Rightmove Acquires HomeViews for £8 Million
1 2 3 160
January 18, 2024
Harvey is an experienced property journalist and copywriter. He has written about the property industry since 2015, starting at The Property Franchise Group in the UK, before moving to Spain to work for Spotahome. He has blogged for the private rented sector, ghostwritten for UK property experts and written case studies for franchise owners around the UK. Harvey joined Online Marketplaces as a News Editor in 2022.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Shutterstock 1932382865
$13 Billion Adevinta Takeover Deal To Go Ahead After 11th Hour Drama

The acquisition bid made by Aurelia Bidco for the Oslo-listed online marketplace operator Adevinta has finally reached the approval threshold...

Read More
Shutterstock 2245599643
Zillow Adds Individual Room Listings to Its Portal

The U.S. real estate portal Zillow has announced the addition of individual room for rent listings to its portal. The...

Read More
Blank 705 X 430 5
Immowelt's German Parent Company Rebranded to 'AVIV Germany'

The local parent company of the German real estate portal Immowelt has changed its name to 'AVIV Germany'. Immowelt is...

Read More
Untitled Design 15
REA Group Sees Strong Domestic Growth in HY1 Results

The Australian real estate marketplace operator REA Group has released its results for the first half of its 2024 financial...

Read More