A financial column in The Times has advised investors to avoid Rightmove.

Simon Duke, in yesterday’s Tempus column, said that Rightmove is one of the world’s most successful enterprises.

However, Duke said it has managed to “milk” estate agents, and asks whether their patience might be about to snap.

Duke says that Rightmove has a market capitalisation of £5.5bn, an average of over £10m for each of its 538 employees – Apple doesn’t come close, he says.

Rightmove enjoys “outsized profit margins” and is among the most highly rated companies on the stock market.

It has established dominance in its field, benefits from a strong network effect, and as an incumbent, has not had to invest large sums to maintain its lead.

Despite Brexit paralysis, last year Rightmove raised its revenues by 8% to £289m with pre-tax profits rising to £214m.

But, Duke says, “scratch beneath the surface, though, and a different picture emerges”.

He adds: “The slump in advertisers on the platform begs an even more fundamental question. For years, Rightmove has managed to milk clients for steadily greater sums every month, but not by enough to cause a revolt.

“With the average monthly bill for an estate agent’s branch now approaching £1,100, might their patience be about to snap?”

Duke quotes a “blistering” research note from Jefferies in December, which argued that “the game could be up for Rightmove if agents take collective action to free themselves from the portal’s ‘psychological chokehold’.

“That will be easier said than done.

“Nevertheless, competition is increasing and agents have other options to list their properties.

“At the present level, its shares are trading at 30 times this year’s estimated earnings. Other portals offer more attractive valuations and are growing more rapidly.”

In his ‘avoid’ advice, Duke says Rightmove will struggle to raise prices by enough to merit valuation, and “other portals are cheaper and will grow more quickly”.