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2025-11-07 17:49:23
[AI Devours Profits! Property Giant Plunges 28%, Cost of Tech Transformation Emerges] ⑴ Shares of Rightmove, the UK's largest property portal, plunged 27.6% intraday on Friday, ultimately closing down 18.8%, hitting a two-year low and leading the FTSE 100 index lower. ⑵ The plunge was mainly due to the company's projected 2026 underlying operating profit growth to plummet to 3%-5%, far below the 9% growth rate in the first half of 2025. ⑶ The company plans to invest approximately £18 million (about $24 million) in technological innovation in 2026, with AI research and development being a core investment direction. ⑷ CEO John Swanström emphasized that AI has become central to the company's operations, and accelerated investment aims to achieve long-term double-digit profit growth. ⑸ Due to increased investment, analysts predict its profit margin will drop from 70% to 67%, raising market concerns about the return on investment. ⑹ Market concerns reflect the risk of a global tech bubble, and investors are closely watching whether the massive AI investment can translate into real returns. (7) Despite a rebound in buyer interest in the UK housing market, inflationary pressures and the tax increase budget to be announced this month continue to weigh on consumer confidence.
