Rightmove, Zoopla, estate agents and developers were all among losers in yesterday’s Black Monday.
In what was being called a bloodbath on the stock market, markets crashed around the world.
In the UK, nearly three years of gains were wiped out, while in China, yesterday’s 8.5% collapse followed a 12% decline last week – signalling uncertainty for UK estate agents over Chinese buyers of property in this country.
Rightmove shares fell 5.25% and Zoopla ended the day 7.91% down.
The UK’s largest estate agent, Countrywide, fell 2.28%, while LSL went down 7.74% and Savills shed 6.72%.
Foxtons’ shares lost 5.77% of their value, while house builders Barratts fell 3.44%.
Comments (11)
My old man was a stock broker and his take on this is that it is a generation thing.
Basically, the new “young bucks” come in to the finance world and think up clever schemes to make money.
On the face of it the schemes work, but in the long run they are no better than every other method of making money – i.e. some do and some don’t.
I think that in 50 years time all of those pundits and commentators who stated that digital is just not the same as the old way will find that they were wrong.
Other than central banks you can’t magic money out of thin air and your market value will be based on the real world value of your business. IN THE END.
At the moment though, while everyone believes the “money for nothing” BS from the digital marketing guys, it is possible to make money out of their stocks & shares.
Ahhh, hindsight!
I have struggled to find an online agency that is returning a profit and wonder why basic due diligence isn’t happening at the point of investing. Perhaps there is the belief online agency is new and financial track records aren’t available.
to clarify I am not referring to traditional offices without premises as online agents, there’s a world of difference between the two models a difference
Very strange thing to say ? have you been through the P&L’s ?
I am sat here wondering if the digital/online bubble has just burst just as the Dot com bubble burst in similar fashion
No Robert, the Chinese bubble has, distorts all in its wake. China falls, drops or even ducks and the world follows.
Digital stock will likely be more robust in the long term. They’ll likely recover quicker than most…There is no digital bubble to speak of – there are now some incredibly well established and deep rooted digital businesses with fingers in many markets.
Spend a couple of days in Endole and you will find some very curious results, certainly result that don’t match up to some of the PR we are handed out.
I think investors will be very nervous about investing in firms that are not delivering to the business plan or hype. I was looking at one firm last night that although is delivery a reasonable growth is close to 90% behind its prospectus with only 9 months to go.
If you look at some of the bigger digital names the numbers peak like Everest and have dropped away very sharply indeed and those drops are historic not a reaction to China.
I’ve searched everywhere this morning, but I simply cannot find one chuff to give 🙂
You are spelling it wrong try Chough, there are still a few in Cornwall. Ask Chris Wood. 😆
Being a Cornishman man myself (Although now refined by London), I can confirm the word I wanted to use is spelt the same down there 😛
Chuckle! A refined Cornishman in London? I met one of those in the Mansion House 10 years ago when David Brewer was Lord Mayor of London.