Skip to content

Can the Rightmove share price return to its former highs?


This month for the FTSE350 portfolio, I am looking to buy a very good quality business, at an opportune time, when the shares have been knocked down by factors external to the business.

If you have bought a big ticket item recently, you will have more than likely used an internet platform to facilitate your purchase. These platforms, that help us browse hundreds of variations of the available product or service, can grow to huge dominance off the perpetual forces of a network effect (more sellers leading to more buyers). Often loved by the consumer for their ease of use and buyer protection, these platforms sometimes draw ire from their customers, those who list goods for sale on the online marketplace, as the platform becomes increasingly powerful and can charge ever higher fees for doing business. It is this balancing act, between extracting as much value from sellers as possible, whilst ensuring that the marketplace continues to thrive, that the successful platform generates strong returns for us investors.

One such company that has finessed this balancing act, is the UK listed property portal, Rightmove plc [LON:RMV], the focus for today’s addition to the ‘buy list’. Whilst the health of the UK property market could be deemed as highly cyclical, affected by macroeconomic forces, Rightmove’s fortunes are not directly correlated to either house prices or transaction numbers, relying on a monthly subscription fee from estate agents and housebuilders who use the platform, Rightmove has managed to grow revenues sustainably even throughout periods of economic downturn.

Want the full story? Access all of The Armchair Trader's content for just £5.99 per month.

Get weekly investment ideas and tips that will take your investing to the next level. Sign up here.

Free 28 day trial. Cancel anytime.

Log In or Sign Up to Armchair Trader+

Already a member? Log in here:

Not a member yet? Sign up for your free trial or check out the benefits of membership.

Further content of this article is not available as it is for members only. Please visit the registration page for Armchair Trader Plus+ for further details on the benefits of becoming a member.

Looking for great investing ideas? Sign up to our free newsletter.

This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

'How to' Guides

Our latest in-depth company reports

Detailed reviews of selected companies and investment trusts.

On the podcast

Sign up for great investing stock tips

Thanks to our Site Partners

Our partners are established, regulated businesses and we are grateful for their support.

CME Group
FP Markets
Back To Top