Rightmove shares shot up by 38p in just 30 minutes on Friday, making it the biggest riser on the FTSE250.
The rise came after news that the portal has done a deal with Google maps, although some commentators attributed the increase in the share price to the upbeat Nationwide survey which said that January house prices rose by 1.2%.
The rise in Rightmove’s share price was in sharp contrast to the hammering it took when news broke that Google is to launch into the UK real estate market as a free property search site.
Rightmove did not make an announcement to the Stock Exchange on Friday about its deal with Google.
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Comments
Plug - No vendor pays estate agents selling fee just because Estate Agent will list their property on RM and buyers will find it on RM. Professional Estate Agents are as secure as "Hardcopy Contracts and Letters" inspite of email and their destiny will not be ruled by either Google or RM - it will be their good business ethics, professionalism and knowledge of local people and market that any online statistics cant provide, me thinks!
"Google has entered UK Property Market with more property than RM and is Free for Agents" You missed one vital part in that statement property lander and that is its free for all agents and private sellers so if google does take the portal market in the uk by storm and walk the floor with rightmove estate agents will have a big issue because vendors wont need them anymore if everyone goes looking on google for properties why pay an agent a selling fee when they can upload it for free.
Hi James, you are absolutely correct - it seems the misleading information has driven their share prices up. The term "Rightmove does deal with Google" is so mesliading. Instead, it should have been "Righmove follows other portals and integrates Google Map - finally"
However it seems to have worked in their favor temporarily - once Google announces, "Google has entered UK Property Market with more property than RM and is Free for Agents" - we know what will happen to their share prices!
I did understand the Google deal correctly, didn't I? RM is now using Google Maps. That's it, isn't it? Hardly the stuff that will bolster the stock market is it? I mean if they had done a deal to keep Google out of the market that would be something else but just using Maps?
Another reason for them to increase prices further!!
Latest News! Rightmove shares plummet on news of a major contender to Google! Yahoo perhaps?