Rightmove\u2019s share price has declined to a five-year low this week, dropping 15% over the past month amid concerns over planned fee increases and investment spending.<\/p>\n
The property portal\u2019s shares were valued at \u00a34.37, down approximately 30% from \u00a36.35 in 2021. The stock had reached a peak of over \u00a38 in August last year before declining sharply.<\/p>\n
The share price fell significantly in November following a trading update that outlined plans to spend \u00a360 million over three years on artificial intelligence and product development, which the company acknowledged would affect profitability.<\/p>\n
Rightmove forecast revenue growth of 8-10% and profit growth of 3-5% for the current year during what it described as an \u201cinvestment phase\u201d. The company stated the additional expenditure would support \u201cdouble-digit profit growth\u201d in subsequent years.<\/p>\n
The portal is scheduled to publish its full-year results later this month.<\/p>\n
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Independent estate agents warned last week that proposed fee increases of up to 18% this year could force some businesses to close. The portal is also facing a group legal action seeking to recover what claimants describe as \u201cexcessive and unfair fees\u201d.<\/p>\n
Dan Coatsworth, Head of Markets at AJ Bell, noted the timing of the share decline: \u201cIt\u2019s no coincidence that Rightmove\u2019s shares have been in steady decline since announcing last November it would make AI-related investments.\u201d<\/p>\n
\u201cA year earlier, any mention of AI would have been cause for celebration. Now it\u2019s a suggestion that Rightmove is having to move with the times, and investors are jittery about companies spending on tech,\u201d Coatsworth said.<\/p>\n
He added: \u201cThe question people might now ask is whether Rightmove\u2019s AI spending plans are an offensive or defensive move.\u201d<\/p>\n
The share price has experienced similar low points in 2022 and 2023, recovering on both occasions. The company\u2019s forthcoming annual results will provide further insight into its financial position and strategic direction as it navigates the investment period and fee structure challenges.<\/p>\n","protected":false},"excerpt":{"rendered":"
Rightmove\u2019s share price has declined to a five-year low this week, dropping 15% over the past month amid concerns over planned fee increases and investment spending. The property portal\u2019s shares were valued at \u00a34.37, down approximately 30% from \u00a36.35 in 2021. The stock had reached a peak of over \u00a38 in August last year before […]<\/p>\n","protected":false},"author":1,"featured_media":8441,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-8440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n