Rightmove's AI Investment Driven by Defensive Catch-up Rather than Strategic Growth
Dow Jones
Sep 09
0933 GMT - Rightmove's investment into AI is seen more as a tech catch-up than a proactive reinvestment, Stifel analyst Clement Genelot says in a note. The property portal appears burdened by time-consuming cloud migrations and legacy system overhauls, it has lagged behind its primary rival Scout24 in AI product rollouts and faces years without incremental AI revenue, leaving it scrambling simply to keep pace, Genelot says. Its new long-term plan has deliberately set a low bar as it assumes it won't make any extra money from new AI features between 2026 and 2028 beyond what's already included in existing subscription packages, he says. Stifel initiates cover with a sell rating and a 356 pence target price. Shares are down 4.5% at 469.70 pence.
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