Shares in online property listing platform Rightmove tumbled by as much as 28% on Friday after the firm dropped its profit guidance following investments into AI.
The company has projected its operating profit to grow 3-5% next year, down from an earlier forecast of 9%, with AI investments suggested as the reason for the dip.
The dip comes amid rumours of an AI bubble, with figures including Bank of England Governor Andrew Bailey warning the current level of AI investment and its impact on global financial markets may be unsustainable.
Despite these concerns, Rightmove has insisted that “AI is and will continue to be central to all that we do”.
Among the firm’s recent integrations of the technology are assisted query responses and AI keyword trackers to improve its search features.
“AI is now becoming absolutely central to how we run our business and plan for the future,” said chief executive Johan Svanstrom.
“We are already working on a wide range of exciting AI-enabled innovations for the benefit of our partners and consumers, and see vast potential utilising our leading reach and connected data.
“We are investing to accelerate our capabilities, which we are confident will create an even stronger platform and higher-growth business over time. We aim to further advance our leading digital position in the UK property ecosystem.”
Rightmove stock is down more than 30% from its 2025 peak 823.80p in August.
