Share in British real estate listing company Rightmove plummeted as much as 28% on Friday after it warned of lower profit growth on the back of accelerated investments in artificial intelligence.
Rightmove projected a operating profit growth of 3% to 5% in 2026, coming in lower than its forecast of 9% growth this year. The firm put the shrinking down to its AI investments as it upgrades internal systems and its consumer-facing app and search tools. It’s also looking at newer applications of AI, such as agents.
The share move marks a new 52-week low for the firm, though it pared some losses and was last trading 12% lower.
UBS analysts said the “strategic pivot poses important questions that the market will not yet have answers to” and moved its price target and rating for Rightmove to under review.
This is a developing story. Check back for updates.