Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
Rightmove Shares Rebound After Legal Hearing Date Announced
Rightmove’s share price bounced back by 7% after news broke that a court date has been set for a £1.5 billion legal case against the property portal. The case involves thousands of estate agents who were allegedly overcharged by Rightmove.
The Competition Appeal Tribunal has scheduled the hearing for 2nd and 3rd November this year. The announcement of the court date followed an initial dip in Rightmove’s share price, but the shares quickly recovered. Despite this recent rebound, Rightmove’s share price has fallen nearly 18% over the past six months. In April, the share price dropped by more than 10% in a single day after news of the legal action was filed, before regaining some ground.
The share price movements come despite forecasts of a profit increase of up to 5% for Rightmove this year. According to The Negotiator, Rightmove’s shares have been affected by negative sentiment towards both the company and the broader housing market.
Dan Coatsworth, Head of Markets at AJ Bell, commented to The Negotiator that Rightmove’s income is based on regular fees from estate agents, and weaker housing transaction numbers can put financial pressure on its client base. This could lead estate agents to seek better deals or close branches, potentially impacting Rightmove’s subscription income.
Market concerns also include uncertainty about Rightmove’s investment in artificial intelligence (AI) and whether AI chatbots could become competitors if property seekers use AI search tools instead of visiting Rightmove. The Negotiator mentions Jaiyn.ai as an example of an AI chatbot that agents can use on their own sites to appear in AI searches.
Despite these concerns, some value-style fund managers, including City of London Investment Trust, have shown interest in Rightmove shares, believing that fears about AI competition may be overstated.
Rightmove has been contacted for comment.
Source: The Negotiator