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Rightmove Cuts Near-Term Profit Outlook as It Commits £60m to AI Overhaul

Lower guidance underscores a long-horizon push that drew a one‑day loss of over £1 billion.

Overview

  • Rightmove will invest £60 million over three years, including £18 million next year split between a £12 million P&L charge and £6 million in capital spending.
  • The company now guides for 3% to 5% underlying operating profit growth next year, down from prior expectations of 4% to 9%.
  • Shares fell as much as 28% on the announcement, erasing more than £1 billion in value before closing 12.5% lower at a £4.3 billion market capitalization.
  • Rightmove says 27 AI projects are in train with four live, including an AI keyword search trained on 25 years of listings, seller-targeting tools (Discover, Opportunity Manager) and a virtual staging feature ('Style with AI').
  • Analyst views diverged, with RBC upgrading the stock on long-term potential, UBS downgrading on delayed payoffs, and AJ Bell highlighting investor skepticism and execution risk.