Top 5 EU Internet Stocks: Morgan Stanley Ranks Scout24 as Leading AI Adopter

Investing.com -- European internet stocks are evolving rapidly through artificial intelligence adoption, with property and auto marketplace companies leading the transformation. Morgan Stanley’s latest analysis ranks the top performers in this competitive landscape, highlighting how AI integration is becoming a key differentiator.

Scout24 (G24n.DE) - Scout24 runs Germany’s leading digital property marketplace, connecting buyers, sellers, landlords, and tenants. Morgan Stanley, the brokerage behind this analysis, rated Scout24 as "equal-weight" in its latest report.

The company is embedding artificial intelligence across both consumer and business segments. On the consumer side, Scout24 has introduced HeyImmo, an AI-powered assistant that enables users to search for homes conversationally.

On the professional side, its PropstackAI suite automates video creation, image optimization, and virtual staging for listings. PropstackAI accounted for nearly two-thirds of up-sell revenue in July 2025 and grew customers more than 40% year on year.

Internally, Scout24 uses Anthropic’s Claude as a productivity tool for writing, research, and coding tasks, reflecting a comprehensive integration of AI across its operations.

Morgan Stanley’s valuation is based on a discounted cash flow model using an 8.7% WACC and 3% terminal growth rate

Auto Trader Group PLC (AUTOA.L) - The UK’s dominant vehicle marketplace earns an "underweight" rating despite strong AI adoption.

The company’s Co-Driver suite includes AI-generated descriptions, automated image management, and advert optimization tools that streamline dealer workflows and improve listing quality.

Auto Trader Connect, its data-sharing platform, links dealers’ stock and pricing directly with the marketplace in real time, enhancing accuracy and efficiency.

Morgan Stanley notes Auto Trader’s defensibility lies in proprietary dealer-side data and valuation models that are difficult for AI assistants to replicate.

The brokerage’s valuation model uses a 9.8% WACC and a 3% terminal growth rate.

Rightmove Plc (RMV.L) - The UK’s largest property portal receives an "equal-weight" rating, citing a balance between strong brand defensibility and slower AI adoption.

The company is transitioning from traditional, filter-based search to conversational AI-driven interactions.

It has introduced an Instant Online Valuation tool and machine learning-based Opportunity Manager that predicts likely home sellers.

Additionally, a virtual assistant within Rightmove Plus helps agents optimize listings and leads.

The brokerage applies a discounted cash flow methodology with a 9.8% WACC and 3% terminal growth rate to value the stock.

While the real estate vertical is viewed as the most insulated from AI disruption, Morgan Stanley sees limited near-term catalysts for re-rating without faster AI-driven innovation.

Hemnet Group AB (HEM.ST) - Sweden’s leading property platform earns an "equal-weight" rating.

The company’s AI use remains limited compared with peers, with efforts focused mainly on refining search relevance and automating property descriptions.

Unlike larger platforms such as Scout24 or Rightmove, Hemnet has yet to roll out significant AI-driven tools for agents or consumers.

Its weaker listing position relative to domestic rival Booli and slower adoption of AI technologies constrain its competitive edge.

Morgan Stanley values Hemnet using a 10-year discounted cash flow model with an 8% WACC and 3% perpetual growth rate

Vend Marketplaces ASA (VENDA.OL) - This multi-vertical classifieds operator covering jobs, real estate, and mobility receives an "overweight" rating.

In mobility, Vend’s Nettbil platform employs AI to align seller expectations with market data for vehicle valuations. In real estate, it uses AI to create interactive smart floor plans, while in jobs, its FINN platform has launched SmartSearch-a natural language job search tool-and an AI assistant to help users craft stronger applications.

The brokerage uses a 10-year DCF model with a 9.5% WACC and 3% terminal growth rate to value the stock.

Despite its exposure to more vulnerable verticals like jobs, Morgan Stanley views Vend’s diversified portfolio and proactive AI adoption as supportive of its "overweight" stance.

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