Rightmove Shares Plummet 28% as AI Spending Slows Profit Growth – What Investors Need to Know in 2025

• Why Did Rightmove’s Stock Crash?
• Is This Just a Rightmove Problem, or a Sign of Bigger AI Fatigue?
• What Exactly Is Rightmove Spending On?
• Can Rightmove Recover?
• FAQs: Rightmove’s AI Shock Explained

Rightmove, the UK’s leading property listings platform, saw its stock price nosedive by nearly 30% after warning investors that its 2026 profits WOULD grow slower due to heavy AI investments. The market reaction was brutal, wiping out billions in market cap and raising questions about whether the AI hype is starting to crack. Here’s a deep dive into what happened, why it matters, and what it says about the broader tech sector.

Why Did Rightmove’s Stock Crash?

Rightmove’s shares took a historic hit, dropping as much as 28% at one point—the worst single-day decline in years. The trigger? A sobering forecast: the company now expects operating profit growth of just 3-5% in 2026, far below the 9% growth projected for this year. CEO Johan Svanstrom blamed the slowdown on “strategic AI investments,” including overhauling agent tools and consumer-facing platforms. Analysts weren’t convinced, with UBS slashing its price target and warning of a potential 5-19% drag on profits through 2028.

Is This Just a Rightmove Problem, or a Sign of Bigger AI Fatigue?

The selloff wasn’t isolated. U.S. tech stocks had already been wobbling, and Asian/European markets followed suit. Kiran Ganesh, a strategist at UBS, told CNBC that investors are getting antsy about AI stocks: “There’s no clear roadmap for when these investments will pay off—or how much.” Rightmove’s crash landed like a grenade in this jittery environment. Even stable, “boring” companies aren’t immune when they tie slower growth to AI spending.

What Exactly Is Rightmove Spending On?

The company is betting big on AI-driven tools for real estate agents (think automated responses to buyers, predictive pricing models) and revamping its consumer app. Svanstrom insists this is essential: “AI is becoming Core to how we operate.” But the market’s message was clear: prove it. After years of easy-money tech valuations, investors now demand tangible results—not just potential.

Can Rightmove Recover?

The company claims profits will rebound post-2028, targeting 12% annual growth by 2030. But that’s a long wait for shareholders. The bigger question: will AI deliver enough value to justify the pain? For now, the City’s patience is wearing thin. As one trader put it: “Rightmove used to be the steady-Eddie of the FTSE. Now it’s just another AI gamble.”

FAQs: Rightmove’s AI Shock Explained

How much did Rightmove’s stock drop?

At its lowest point, shares were down 28%, though they later recovered slightly to close about 22% lower.

Why is AI spending hurting profits?

Heavy upfront costs for development and implementation are squeezing margins, with payoffs expected only after 2028.

Are other AI stocks at risk?

Potentially. Rightmove’s crash highlights growing investor skepticism about unproven AI spending across sectors.