When a stock plummets by 50%, it’s easy to write it off as a sinking ship. But what if the people steering that ship start buying up shares like it’s going out of style? That’s exactly what’s happening with Rightmove (LSE: RMV), a FTSE 100 company that’s been battered in the markets over the past year. Personally, I think this situation is far more intriguing than it initially appears.
The Insider Move That’s Raising Eyebrows
What makes this particularly fascinating is the recent wave of director purchases at Rightmove. Since late February, four key figures—including the Chair, CEO, CFO, and a board member—have collectively invested over £1 million in the company’s shares. One thing that immediately stands out is the scale of Lorna Tilbian’s purchase: nearly £1 million worth of shares. Tilbian isn’t just any board member; she’s a seasoned investor with a deep understanding of the market, having co-founded Numis Corp. Her move suggests she sees something the rest of us might be missing.
From my perspective, insider buying is often a double-edged sword. On one hand, it signals confidence in the company’s future. On the other, it could be a last-ditch effort to prop up a struggling stock. But in Rightmove’s case, the timing and the players involved make it hard to ignore. What many people don’t realize is that insiders often have access to information that’s not yet public. Are they betting on a turnaround, or do they know something we don’t?
The AI Elephant in the Room
Rightmove’s 50% drop isn’t happening in a vacuum. The company has been caught in the crossfire of the broader software sell-off, with investors fearing that AI will render platforms like Rightmove obsolete. If you take a step back and think about it, this fear isn’t entirely unfounded. Why browse properties on a dedicated site when ChatGPT or an AI agent could do the heavy lifting for you?
But here’s where it gets interesting: Rightmove isn’t sitting idly by. The company is actively integrating AI into its platform, launching features like a data-driven search tool and a ‘style with AI’ function that lets users visualize properties in new ways. This raises a deeper question: Can legacy companies like Rightmove adapt fast enough to stay relevant in the AI era?
In my opinion, the answer isn’t black and white. While AI poses a threat, it also offers opportunities. Rightmove’s 25 years of data give it a unique edge—something that even the most advanced AI can’t replicate overnight. What this really suggests is that the company’s fate isn’t sealed; it’s still very much a work in progress.
The Valuation Conundrum
Let’s talk numbers. Rightmove’s stock is trading at a forward P/E ratio of just 13, based on 2025 earnings forecasts. That’s cheap—almost suspiciously so. Add in a dividend yield nearing 3%, and you’ve got a stock that’s offering both value and income. But here’s the catch: cheap stocks are often cheap for a reason.
A detail that I find especially interesting is how the market is pricing in the AI risk. Investors seem to be assuming the worst-case scenario, but is that realistic? Personally, I think the pendulum has swung too far. Rightmove isn’t a dinosaur; it’s a company with a strong brand, a loyal user base, and a willingness to innovate.
The Broader Implications
Rightmove’s story isn’t just about one company—it’s a microcosm of a larger trend. Across industries, established players are grappling with the rise of AI, and investors are struggling to separate the winners from the losers. What makes this particularly fascinating is how quickly sentiment can shift. Just a year ago, Rightmove was a darling of the FTSE 100; now it’s a cautionary tale.
If you take a step back and think about it, this volatility highlights a broader issue: the market’s tendency to overreact. AI is transformative, no doubt, but it’s not an instant death sentence for every company in its path. Some will adapt, others will falter, and a few will thrive. The key is to identify which category Rightmove falls into.
My Takeaway
So, is Rightmove a buy? In my opinion, it’s worth a closer look—but not without caution. The insider buying is a strong signal, and the valuation is undeniably attractive. But the AI risk is real, and the company’s ability to innovate will be the deciding factor.
What this really suggests is that we’re at a crossroads. Rightmove could emerge as a resilient player in the AI era, or it could become a footnote in the history of disrupted industries. Personally, I’m leaning toward the former, but only time will tell.
One thing’s for sure: this isn’t a story to ignore. Whether you’re a value investor, a tech enthusiast, or just someone fascinated by market dynamics, Rightmove’s journey is one to watch. After all, in the world of investing, it’s the stories that seem too good—or too bad—to be true that often hold the most lessons.
