Rightmove's AI Push Sparks £60m Market Jitters

Rightmove's shares plummeted by over a quarter on Friday after the property listing website revealed plans to step up investment in artificial intelligence (AI). The company's decision to allocate £60 million over the next three years to AI-related initiatives sent shockwaves through the market, with investors expressing concerns over the potential impact on profit growth. According to Rightmove's latest update, the company is planning to invest £60 million in AI over the next three years, with a significant portion of this amount dedicated to developing AI-enabled innovations for the benefit of its partners and consumers. The company's chief executive, Johan Svanstrom, emphasized the importance of AI in driving its future growth, stating that it is "becoming absolutely central" to the running of the business. Rightmove's financial projections for 2026 revealed a lower operating profit growth forecast of 3-5%, compared to its previous forecast of 9% growth for this year. The company aims to boost annual revenue growth to over 10% by 2030, but the AI investment plans have raised concerns among investors about the potential impact on profit margins. The market impact was immediate, with Rightmove's shares sinking by over 25% at one point on Friday. This significant decline reflects investors' concerns over the potential risks associated with the company's AI investment plans. The market reaction highlights the challenges faced by companies in balancing the need to invest in emerging technologies with the pressure to deliver short-term financial results. Rightmove operates in a highly competitive property listing market, where companies are constantly seeking to innovate and differentiate themselves. The company's decision to invest in AI reflects its commitment to staying ahead of the curve and leveraging technology to drive growth. However, the market's negative reaction to the announcement suggests that investors are cautious about the potential risks and challenges associated with this strategy. Looking ahead, Rightmove's future outlook remains uncertain. While the company's AI investment plans are designed to drive growth and innovation, the potential risks and challenges associated with this strategy are significant. The company will need to carefully manage its investment and ensure that it delivers tangible returns on its AI initiatives in order to regain investor confidence. In conclusion, Rightmove's shares plummeted after the company revealed plans to invest £60 million in AI over the next three years. The market's negative reaction reflects investors' concerns over the potential risks and challenges associated with this strategy. While the company's commitment to innovation and growth is commendable, it will need to carefully manage its investment and deliver tangible returns on its AI initiatives in order to regain investor confidence.