Rightmove shares rise as AI threat downplayed

Rightmove’s share price experienced an increase as the company’s chief executive, Johan Svanstrom, dismissed concerns regarding the potential impact of artificial intelligence on the property search market. The shares rose by 4.3 per cent, marking a slight recovery, yet they remain 45 per cent below their value from August.

Despite fears that AI technologies may disrupt the traditional property search process, Svanstrom assured stakeholders that Rightmove’s established brand and platform continue to hold significant value. He emphasised that the company offers essential tools and data insights for estate agents, beyond simply listing properties.

Svanstrom remarked that the notion of AI outpacing Rightmove is unfounded, comparing the situation to various industries facing digital transformation. Although he acknowledged the evolving role of AI, he positioned it as an additive technology rather than a replacement for Rightmove’s established services.

In recent months, Rightmove has expanded its offerings by introducing a conversational search function. The company is collaborating with Google to enhance AI capabilities, suggesting a strategic approach to incorporate AI without compromising its core services.

Analysts noted that Rightmove’s recent financial results were in line with expectations, with a 9 per cent increase in revenue to £425.1 million and a pre-tax profit rise of 12 per cent. These metrics underscore Rightmove’s solid standing within the property sector.

Looking ahead, the company forecasts revenue growth between 8 and 10 per cent, driven by an increase in agents subscribing to its premium “Optimiser Edge” package. This optimism reflects the ongoing importance of Rightmove in the real estate market, particularly as consumers spent significant time engaging with its platform in recent years.