Zoopla falls hard as analyst says OTM ‘proving a viable alternative’

Zoopla finished Friday as the day’s biggest FTSE 250 faller.

Its shares, which had previously done well last week, slid 5.61% or 10.7 points to 180p after analyst Peel Hunt said that OnTheMarket, launched a week ago, was “proving a viable alternative to Zoopla in terms of inventory”.

Peel Hunt also put a sell rating on Rightmove, an opinion shared by Panmure Gordon and Investec.

Other brokers, however, differ.

For example, Liberum Capital continues to rate Rightmove as a “buy” and Exane BNP Paribas reiterates its “outperform” rating of Rightmove.

So far this month, Panmure Gordon has put a “sell” rating on Zoopla, while Jefferies has downgraded the shares from “buy” to “hold” and Exane from “neutral” to “underperform”.

Hargreaves Lansdown gives a range of brokers’ forecasts on Rightmove here

…and on Zoopla here

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23 Comments

  1. calleb

    And herein lies the whole problem and the reason OTM was born!

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    1. NewsBoy

      And the reason that my 4 office business is so fed up with paying over £3,000 a month, £2,400 of which just goes in profit from Wrongmove. We never went to Hoolahoopla but it is a shame they have to go first. I would love to see all my local agents ditch Wrongmove and all go onto Hoolahoopla. A nice divide and rule strategy perhaps??

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  2. ukpropmaster

    "Zoopla falls hard" sorta ignores context don't you think? From January the 22nd (2 week days before the launch of OTM) Zoopla went from 150.8 to 190.7 on Jan 29, before "falling hard" all the way back to 180. That still puts it up ALMOST 20% over that period of time, which I'd personally be willing to gander is as much as any other FTSE250 name. How in the world does this qualify as unbiased news reporting?

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  3. davidbamforth

    Property Industry Eye, as usual incredibly biased reporting, I thought news reports were supposed to be impartial?

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    1. Robert May

      Are you saying Ros is making up the facts? Which FTSE250 firm fell more than Zoopla on Friday? I can't see any point in moaning if EYE is covering stories it's readership want to keep abreast of. The effects on both Zoopla and Rightmove of AM/ OTM is a story that has been building for 3 years, now facts are known should Ros just ignore them?

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      1. ukpropmaster

        Robert, please don't act dense–I can tell from your posts that you are more intelligent than that. You really don't think this is a biased article? Where was the article on Tuesday that highlighted that Zoopla was the fastest riser in the FTSE250? Or the one on Monday? Oh yeah, PIE forgot to write those…

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        1. RealAgent

          It was in an article headed "broker suggests sell rating". Over half the piece was given over to Zooplas increased share price. I see nothing wrong with this article its factual and the share price drop followed another brokerage report……

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          1. ukpropmaster

            Let's think about that shall we? The share price move to the upside was in an article titled "broker suggests sell rating," and the one-day pullback in the stock gets an article called "zoopla falls hard." I'm sorry and am always happy to see the two-way debate on this website, but anyone who convinces themselves that things are truly being presented through an unbiased lens needs to question his/her own intellectual honesty.

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          2. RealAgent

            I see Ukprop, I guess the answer is that in future EYE really should check headlines with you first: ZOOPLA SHARE PRICE FALLS 10% IN ONE DAY – BUT IT WAS ONLY A ONE DAY PULL BACK ACCORDING TO ANONYMOUS FORUM POSTER.

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          3. ukpropmaster

            RealAgent, not going to get into this with you. If you honestly think that mentions on this site of the incumbent portals are balanced between being pro and anti, then you are obviously either a) downright unintelligent or more likely b) so biased in your own perceptions that you don't even notice how slanted the "reporting" is. Also I would like to mention that your headline and the stat mentioned in this article is factually inaccurate, as the stock fell from 190.7 to 180, which according to my calculator is 5.6%, not 10%. But 5.6% rounds up to 10% right? And that clearly makes the story much juicier. Let's just ignore the fact that during the run up the stock was up 27.2% between Thursday and the following Wednesday, because who wants to hear that part of the story?

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          4. RealAgent

            no lets not get into it ukprop but I will just say this. I found another online publication, EAT, to be have a bias the other way, every story was anti OTM so you know what, I stopped reading it. The editorial team here, I actually think do put a balanced point of view across even if you personally don't happen to think so, but If its not to your liking then equally you also have a choice you can make. What you don't have a right to do is post comments requesting a change of emphasis simply so that happens to agree with your point of view.

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          5. ukpropmaster

            RealAgent, 1) I agree entirely that EAT has a strong bias the other way and it is equally as infuriating 2) I don't think I ever requested a change of emphasis. I understand who pays the bills around here (just look at the advertisers at right) and generally keep my opinions to myself about such things. Every once in a while it's just so blatant it's hard not to shake my head in dismay, especially when certain posters here are completely oblivious to the fact they are being spun! But your advice is good–I shouldn't have said anything, and I will now retreat back into the shadows and let the readers draw their own conclusions.

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          6. Robert May

            Thank you for that reply, to be fair and candidly honest often there is a natural and I think acceptable bias. Those stories that appear at the top of the bill are most widely read almost justifying the slant placed upon them. I find those stories are, with a bit of effort, the best platform to air an opposing view or opinion. It doesn’t matter to me how slanted or biased the story there is an opportunity to post. The BBC is supposed to be un biased but broadcasts some utter tosh about our industry, on the BBC there is no opportunity to add balance. At least on EYE a story about the Zoolpa share price going down allowed you to post that the price went up! The best bit for me it has revealed an agent who hasn't joined AM. You can chose not to answer by I would like to ask, why?

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          7. ukpropmaster

            Thanks Robert and apologise again for the earlier escalation. To answer your question about why we haven't joined OTM, it's quite simple: we are a very data-driven firm and the analysis we have done tells us that our spend with both RM and Z have to date driven excellent ROI for our clients. We are also highly confident that in the very short term, the ROI from advertising with OTM cannot possibly as as high as with the other two portals as it both costs as much as Z and has a very small fraction of the traffic. Add to that a 5-year commitment and the fact that we feel NOT being on OTM gives us a competitive advantage in winning instructions in our area (where PrimeLocation and Rightmove are the two most common portals), our choice was rather clear. If we were able to sign onto OTM on an annual contract (no 5-year lock) and without the one-other-portal rule, we would run the numbers much like we have with Z and RM to see if it made sense, and would not rule out joining.

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          8. RealAgent

            Well one last thing ukprop, no-one wants you to be in the shadows, I have no issue whatsoever with anyone not supporting OTM, everyone has that right and I think debate on that subject, whatever the article headline, should always be encouraged.

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          9. Robert May

            There is no need to apologise, you gave me the opportity of a reply and this dialogue. Let's hope AM read your objections and think about them. I think you are very representitive of the conversations I have had with other Agents.

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          10. smile please

            As much as i enjoy the site, and the good work it does highlighting news and keeping everybody informed on the goings on i too get incredibly frustrated at the biased views of a number of stories. EYE leans towards PRO OTM and as such has a large fan base of PRO supporters and as such if a poster mentions a negative towards OTM they are accused of being a portal rep or just plain stupid. And the other "News site" is massively ANTI OTM – Why we cant just have a balanced view and let the readers decide is beyond me. There must be plenty of readers put off posting as they fear the backlash they will get. Which really dilutes the whole debate on stories. Still as has been pointed out many time "Money talks" look at the right and those are usually the pro stories!

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        2. Robert May

          I genuinely am the most stupid person in the entire industry, I openly admit it and a personal cost of over £1.2million to date reminds me every day just how thick I really am. It takes a special sort of stupid to stick rigidly and loyally to doing the right thing , being fair and honest despite the financial cost. The point being you can't insult me into thinking you are right if I don’t believe you are or if you whack out some minimal effort gripe with no reason or substantive evidence to support you gripe
          I don't know where the article was on Tuesday I guess no-one thought to send it in. Ros is the editor, she can pick from the news stories she is sent but can't be expected to research and write 5 or 6 stories a day. When you say PIE forgot to write the story actually the marketing department of Zoopla forgot or didn't think it important enough to write.

          For what it is worth Zoopla is portal that should have been kept on and kept under control. It and its associated companies has more to offer Agency than Rightmove by a country mile plus a bit. The entire Zoopla executive have stuffed up on a monumental level and all of a sudden it is Ros Renshaw’s fault.

          What does fascinate me is who exactly is the UKpropmaster? What qualifies you to be handing out comment , reprimands and such an important self assured Moniker? If you were let’s say Alex Chesterman , I would love to get into how you have stuffed up the opportunity of a strategic alliance with AM. Below Alex I can’t think of anyone qualified to claim your particular handle.

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          1. ukpropmaster

            Robert, as I have said previously I am an agent and interested observer. I am not signed up for OnTheMarket nor do I have any plans to in the forseeable future, as we have run the numbers and believe strongly that both RM and ZPG provide us fantastic ROI in our area, and that we would be doing a disservice to our clients by diverting those marketing dollars away to a medium that we both know will be less effective in the short term. I generally read these articles with great interest and try not to get involved in the back and forth too much, but at a certain point the slant on these articles is just unbearable, and likewise the slant on the articles at the other industry website is unbearable the other direction……..The reality is stock price does not matter in the slightest. We are agents and not shareholders, so what do we care? But the way that the "news" is presented sounds a lot more like a sensationalist rallying cry "OTM is CRUSHING the Zoopla stock!!!" than it does a balanced presentation of what's going on. Yes the fact that City analysts are downgrading the stock is interesting and newsworthy. The fact that the stock was down 10% is also newsworthy, or would be if it were true (see above–the stock was down less than 6% so not sure where that number came from). But if those are newsworthy items so too surely is the fact that Zoopla was among the top performers in the stock market on consecutive days early last week? Surely that would have been every bit as relevant to the dedicated readership here, who seem so interested in the moves of this particular stock's price in the markets? I honestly don't think anyone here is unintelligent or dense, and so I apologise for my previous posts that may have insinuated as such; however, I do stand by my previous statement that anyone who honestly can't see how biased the stories are on PIE as they relate to the whole RM/ZPG/OTM ongoing story needs to take a look in the mirror.

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  4. Taff

    I admit that I'm not the sharpest tool in the box, so let me get this straight: Some "experts" say sell, while a different expert says "hold" or "buy". And the same "experts" are not saying the same thing this week, that they were saying last week. Sorry, but when one "expert" didn't realise that RM only showed 1,000 results at a time, it doesn't inspire confidence in any of them. In fact, you may be better off asking my Aunty ***** – she is borderline nuts, but at least she's consistent. And what's to stop RM or Z buying their OWN shares to keep the price artificially high?

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    1. Woodentop

      Basically the so called experts are not in the EA industry and taking leads from varied sources of opinion. The "sell" is because some can see the threat that OTM can be, while others trying their best to be upbeat are relying on the fact that RM in the short term will benefit over the one other portal rule, as more are switching to RM and dropping Z. The crux is, once OTM has established itself, you don't have to be a rocket scientist to see there could be no reason for RM to survive, if those that just moved to them short term then pull out. Many High Street agents will do this as it will get rid (sound business sense) of those portal only anti estate agent web sites, once and for all being any chance of a competitor. The basic principle of OTM is well founded and worries the stock market or we wouldn't be hearing these stories.

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  5. 1stTimeBuyer

    Shares go up and down all the time. Short term tells you little, it's more about the long term price. Pointless article.

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  6. GPL

    I'll just run with… OTM proving a viable alternative. Says it all really! Launched – Phase 1 completed, now Phase 2… moving forward. The Duopoly woke up because someone has come along to spoil their private party.

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