Even as the FTSE 100 reaches new record highs, not all British stocks have joined in on the rally. For example, the UK’s largest online property portal, Rightmove (LSE:RMV) has seen its market-cap collapse by over 40% in the last six months. And the stock price has just recently hit its lowest point since the 2020 stock market crash!
With Rightmove shares now trading at a forward price-to-earnings ratio of just 14.6, this growth stock’s starting to look like a dirt cheap value stock. So much so that at today’s share price, investors can snap up 114 shares for just £500.
So has this created an exceptional buying opportunity?
What’s going on with Rightmove?
The aggressive sell-off of Rightmove shares mainly kicked off in November as management announced a series of aggressive artificial intelligence (AI) investments in its platform.
Superior capabilities and user experience have largely driven Rightmove’s leading market position. And management’s aiming to maintain this technological edge by introducing powerful new AI features to help both real estate agents and homebuyers alike.
However, while that makes sense on paper, investors were less than pleased to hear that these investments were going to cause operating profit growth to slow considerably in 2026, to between just 3% and 5%. By comparison, earnings were up 9% in 2025.
Throw in the added uncertainty of a potential £1bn collective action lawsuit from real estate agents in protest of Rightmove’s price increases, and it’s no surprise to see investors panic. But is this a massive overreaction?
A hidden buying opportunity?
While AI investments are expected to put pressure on profits in the short term, the group’s long-term outlook has actually been upgraded significantly. Assuming the strategy’s successful, management’s projecting revenue to climb by at least 10% a year alongside a minimum of 15% growth in earnings per share starting from 2030.
Obviously, none of this growth’s guaranteed. But even in the short term, the business could be on track to perform better than the pessimists currently expect.
In the two weeks after Christmas, even after facing backlash over fees, the number of listings on Rightmove’s platform skyrocketed by 81%. In fact, they’re now at their highest point since 2014. And with more agencies looking to promote their listings, demand for the group’s higher-margin premium advertising packages continues to grow.
As for the lawsuit, investors may not need to worry. Why? Because proving Rightmove is abusing its market dominance is exceptionally difficult. And similar claims against other companies, most recently BT, have almost all been dismissed.
So where does that leave investors?
The bottom line
Rightmove’s by no means a risk-free investment. The company’s highly sensitive to activity within the real estate market, and with a rising number of competing platforms, it has to continually innovate to stay ahead of its rivals.
Nevertheless, the pessimism surrounding its shares appears to have transformed the company from a premium-priced growth stock to a discounted near-value stock. But providing that management can deliver on its long-term targets, that could end up quickly reversing.
That’s why I think Rightmove shares deserve a much closer look. And it’s not the only potential value stock opportunity on my radar right now.
