FTSE 100 Stocks Plunge 42% Despite Leading Profit Margins

Rowan Ashford

Published: February 8, 2026 8:58 PM ET

FTSE 100 Stocks Plunge 42% Despite Leading Profit Margins

On February 3, 2023, the FTSE 100 saw significant declines, with Rightmove (LSE: RMV) and Auto Trader (LSE: AUTO) emerging as two of the worst-performing stocks. This drop reflects a troubling trend affecting both companies over recent months. Specifically, Rightmove’s stock plummeted by 45%, while Auto Trader experienced a 40% decrease within the last six months.

Challenges Facing Rightmove and Auto Trader

Both companies are grappling with the challenges posed by artificial intelligence (AI). Auto Trader has faced pushback concerning its Deal Builder product, leading to cancellations and downgrades from some users. While these companies are investing heavily in AI, the market is increasingly distinguishing between AI winners and losers.

The AI Landscape

Currently, major players like ChatGPT, Gemini, and Anthropic are viewed as AI frontrunners. In contrast, the incremental advancements made by Rightmove and Auto Trader—such as AI-driven pricing tools and lead qualification—are not seen as revolutionary. This perception creates a challenging environment for these vertical marketplaces.

Impacts of AI Developments

Anthropic recently announced the release of 11 plugins, including a legal plugin capable of reviewing documents.
This advancement in AI capabilities poses a threat to traditional platforms in the classifieds sector.
AI’s ability to extract unstructured data from estate agents and car dealers represents a significant shift in the market.

As the competitive landscape evolves, Auto Trader may find itself directly competing with advanced platforms like Anthropic. While Auto Trader offers perceived value, AI search tools may provide similar results at reduced costs for dealers.

Consumer Behavior and Market Trust

Despite the rapid advancement of AI, consumer behavior remains slow to change, particularly in high-stakes purchases like homes and cars. Buyers tend to favor familiar platforms that offer a comprehensive view of available options. For example, those with specific car preferences may benefit from AI chatbots, but undecided buyers might prefer the traditional marketplace experience.

Market Valuations and Future Outlook

As of now, Rightmove trades at approximately 14.2 times its forward earnings, boasting a strong 66% operating margin. Conversely, Auto Trader is trading even lower, around 13 times forward earnings, with a 63% margin. Both companies continue to report earning growth, but their future remains uncertain amidst rising risks.

While the current stock performance is concerning, investors may still want to consider Rightmove and Auto Trader for potential investment opportunities, albeit with caution due to the inherent risks.