Property Portal's Bold AI Bet Sends Shares Tumbling
Shares in Rightmove, the UK's leading property website, experienced a dramatic crash on Friday, 7th November 2025, wiping approximately £1 billion from its market value. The precipitous drop came immediately after the company unveiled ambitious and costly plans to heavily integrate artificial intelligence across its entire platform.
The FTSE 100 firm announced it would invest £60 million over the next three years, a significant outlay that has prompted concerns over its short-term financial performance. As a direct result of this new strategic focus, Rightmove has been forced to slash its near-term profitability targets, a move that clearly unsettled its investor base.
Market Backlash and Leadership's Defence
Johan Svanstrom, the company's chief executive, staunchly defended the decision, stating, “AI is now becoming absolutely central to how we run our business and plan for the future.” The commitment involves a multi-year partnership with Google Cloud to embed advanced AI tools, including the Gemini and Vertex AI systems, into its services.
However, the market's response was swift and severe. Russ Mould, Investment Director at AJ Bell, commented, “The market did not like Rightmove’s latest update one bit as it warned of slower profit growth in 2026. This is a function of a big increase in investment, largely in artificial intelligence. Investing for future growth is not a bad thing but the scale of the market’s negative reaction implies real scepticism about its decision to put so much money into AI.”
Despite the turbulence, Rightmove sought to offer some reassurance by reaffirming its 2025 targets, which include stable revenue growth of around nine per cent and a robust 70 per cent operating margin.
A Broader Climate of AI Anxiety
This incident occurred against a backdrop of growing global unease regarding the valuation of AI-focused companies. Just a day before Rightmove's announcement, Andrew Bailey, the Governor of the Bank of England, issued a cautionary statement following the Bank's interest rate decision.
Bailey warned that the Bank was looking “very carefully” at stock market prices, hinting at a potential AI bubble. He noted that while AI could drive substantial productivity gains, it was “possible” the market had overpriced these returns, leading to a sharp correction.
Adding to the jitters, Michael Burry, the hedge fund manager famous for predicting the 2008 financial crisis, revealed a massive $1.1 billion bet against major AI companies like Palantir and Nvidia. This move, disclosed earlier in the week, has drawn parallels to the dot-com bubble of 2000, sending shivers through the technology sector and underscoring the heightened sense of caution surrounding AI investments.
