Shares of British property listing platform Rightmove fell sharply on Friday, dropping as much as 28% after the company warned that profit growth would slow next year due to heavy investments in artificial intelligence.
Rightmove now expects its operating profit to grow between 3% and 5% in 2026, compared to the 9% growth forecast for this year. The company attributed the slowdown to increased spending on AI projects, which include modernizing internal systems, improving its consumer app, and enhancing property search tools. It also plans to explore newer uses of AI to help real estate agents.
The stock’s drop marked a new 52-week low before recovering some ground, with shares last trading about 13% lower. Analysts at UBS noted that Rightmove’s “strategic pivot” raises questions that investors may not yet have clear answers for. The bank placed its rating and price target for the company under review, saying the new outlook could lead to a 5% to 19% downgrade of its 2028 underlying operating profit relative to estimates from Visible Alpha, a financial data platform.
The news comes amid growing investor anxiety over a potential AI bubble. U.S. technology stocks extended their recent losses on Thursday, dragging down Asian and European markets, only to rebound later.
Also Read:
Four Key Takeaways From Election Night: Democrats Responded with a Winning Message
A UPS Delivery Jet Crashed in Kentucky, Killing at Least Seven People
