AI's Disruptive Power in Classifieds
Fears that artificial intelligence will disrupt the business model of classifieds businesses have slashed billions of dollars off the value of some of the sector's biggest companies. This has stoked fresh speculation that UK property portal Rightmove could once again become a target for REA Group.
Popular engines such as OpenAI's ChatGPT, Google's Gemini, and Perplexity have the potential to find homes, jobs, and cars someone is searching for without the need to go to a dedicated website. As a result, investors in online classifieds businesses are running for cover.
Market Impact and Investor Reactions
REA Group's shares have lost almost $9 billion, or 25%, in value since August. Overseas, some major classifieds players have been hit even harder, highlighting the widespread concern over AI's role in reshaping digital marketplaces.
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