Advertising Giant WPP's Shares Plunge 18% As Economic Uncertainty, AI Threat Dim Forecasts
The stock settled at $29.34, its lowest point since the onset of Covid in 2020, after lackluster quarterly earnings results and the company's unexpected lowering of profit forecasts. WPP cited a combination of client defections and economic jitters. The sector is facing significant disruption due to AI, which can perform functions like planning, buying and creative execution at a fraction of traditional costs.
More from Deadline
'Happy Gilmore 2' Brings Back Subway Plugs, With Chris McDonald's Shooter McGavin As Pitchman
Disney & Amazon Advertising Units Team Up: "We're Breaking Down Traditional Barriers Between Content And Commerce"
Netflix Adds Yahoo To Its Roster Of Programmatic Advertising Partners
Trading volume was nearly eight times its average level, and the plunge followed an equally poor day on the London Stock Exchange, where shares at one point touched a 16-year low. On Wall Street, shares of the two other major agencies traded in New York (Omnicom and Interpublic) each shed 3%. Last December, Omnicom announced its plan to acquire Interpublic, which would create the world's No. 1 agency and leave it, Publicis and WPP as the three surviving majors.
The poor financial and stock news came several weeks after a key WPP subsidiary, WPP Media, was abruptly fired by Paramount after two decades of working on its movie studio campaigns and other projects. Coca-Cola has also moved its North American media buying business to Publicis, which also took Mars from WPP.
CEO Mark Read, who has said he will step down before the end of the year, told analysts on a conference call that the lowered profit forecast reflected the impact of several client losses along with economic uncertainty. WPP Media, until recently known as GroupM, has faced 'some distractions to the business,' Read said. 'The implementation of the new strategy for WPP Media is going well, but we're clearly not yet seeing that translate into better business performance.'
Evan Spiegel, CEO of Snap Inc., was asked in a CNBC interview from the Allen & Co. conference in Sun Valley, ID about the tumble for WPP shares and what it means for all advertising stakeholders. 'It's hard to speak specifically about WPP's business,' he said, 'but there's no question it's an uncertain business environment.'
When Snap reported quarterly results last spring amid the confusion about President Trump's tariff rollout, it cited 'macro headwinds' hitting its ad business. Investors pummeled the company's shares, which have fallen 46% over the past year.
Some large-scale digital ad sellers, for example Meta and YouTube, have managed to remain on a steady growth trajectory. The state of their businesses, and those of other ad industry stakeholders, will become clear over the coming weeks as more media and tech companies report quarterly earnings.
Best of Deadline
'Stick' Release Guide: When Do New Episodes Come Out?
'Stick' Soundtrack: All The Songs You'll Hear In The Apple TV+ Golf Series
'Wednesday' Season 2: Everything We Know About The Cast, Premiere Date & More
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
AstraZeneca CFO talks tariffs & shifting focus to US market
AstraZeneca's (AZN) revenue hit a record high in the second quarter, driven by cancer drug sales and growth in the US market. AstraZeneca CFO Aradhana Sarin sits down with Market Catalysts host Julie Hyman and Yahoo Finance Senior Healthcare Reporter Anjalee Khemlani to discuss the company's strategy to focus on the US and the impact of tariffs. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. I wonder on the Obviously, the company is celebrating the fact that you hit the largest revenues reported for the quarter. That's really good news, especially as the stated goal is to grow by 2030, and half of that to be part of the US. Talk to me about that and the shift to being a quote-unquote American company now, rather than a sort of UK-based one that we've thought of all these years. Uh, so we, you know, last May, we set this ambition of achieving 80 billion in revenues by 2030, which was almost, you know, doubling our revenues from a 2023 base. Um, and, uh, the US is our our fastest growing market. Uh, when we stack, we don't stack very highly right now, uh, in the US when when you compare pharma revenues because a lot of the pharma companies in the US have much bigger sort of revenue base, but we're growing very fast and our hope is that we'll come, you know, in in in the top five and have half of our revenue. We also set an ambition to have 20 new medicines by 2030. And, um, we already have nine of them and, uh, we announced results for another five of them. So hopefully, uh, that shows that we're on track to to achieve that goal. Well, talk to me about why the US is growing that much far faster. Is it because the dynamics of the healthcare system help boost revenues with more prescribing the the way the PBM system is set up? What are the factors that are helping you grow and are helping you stay confident about achieving that goal? So, there are a bunch of different factors. Um, I think the US is still probably the the best market in the world that rewards innovation. Uh, and we are an innovation-driven company. And so, when new therapies come, you know, we we had a product for breast cancer in her two. Uh, we announced data for another breast cancer product. But as soon as new therapy comes, um, the US market is almost the first to provide access to patients for that new therapy. Uh, secondly, physicians are really, um, you know, we go to Congresses like ASCO where there's, you know, tens of thousands of oncology physicians. They're really into, um, looking at the data and making data-driven decisions. So, again, the, you know, the physicians want the best for their patients and patients are able to get access to medicines very quickly once, you know, drug is approved and so forth in the in the innovative space. In many other markets in the world, that whole process to get approval and then get access and reimbursement just takes a very long time. So that's one reason. Um, the second reason, uh, I think particularly beneficial for oncology medicines, uh, is the part D reform. Uh, so on one hand, the part D reform that was enacted hurts us because we are responsible for paying 20% in the catastrophic phase. But from a patient standpoint, if you're a patient, um, you know, in Medicare, your out of pocket is capped at $2,000. So you can get the best therapy and have no more to pay out of pocket, right? So being in that patient population and getting the best access to medicines and the best care and have your out of pocket limited, uh, is is also great for patients. Um, so I think it's it's where physicians and patients and innovation is rewarded. And that's why it's growing faster given our portfolio is all innovative medicines. So, so let's turn then to the manufacturing base rate and the investment that you're making in the US. And I have to ask about tariffs because we even as we discussed it this morning, this new EU sort of framework agreement, it's still sort of unclear. Are pharmaceuticals coming from the EU exempt? Are they not exempt? It seems a little unclear. So how under what assumption are you operating and how do you operate in that kind of environment? Um, yeah, so you know, I would say this is not a tariff is obviously new, but how we've been thinking about our strategic manufacturing, um, is probably goes back three, four years. So post COVID, we made a strategic decision because we're such a global company that we needed to have segregated supply chains. Um, so for example, uh, in in China and in the emerging markets, we supply a lot of that product from China. Um, in the US, majority of the product is supplied from the US and and so forth in Europe. There is, uh, you know, small minority of product, handful of products actually that we still import from Europe into the US. But we do have excess capacity in the US to manufacture those products. Uh, so what we're, you know, we have 11 manufacturing sites in in the US. So our intention once the tariffs, etc. were were announced and there was talks of tariffs, uh, in the short term was just manage through inventory, so build more inventory in in the US. Um, but we've also started tech transfers for those products which we do import and that those tech transfers would be completed, you know, within a within a year or so, so that we can be fully, you know, not just have the majority, but 100% of it being manufactured in in the US. Um, this new facility that we announced, uh, was part of the plan anyway, but that's a separate has nothing to do with tariffs. It's actually based on the demand that we see potentially for our cardiovascular for new cardiovascular medicine. So, um, but you know, you're right, I think there is a little bit of confusion on when the tariffs are going to be implemented. Um, there is from what I've heard, it is a 15%, but there's also talk that that's the cap. Uh, and, uh, the administration is sort of going to wait for the 232 investigation to actually put them into effect or decide. So, uh, in either case, I think we're very well prepared and and we probably have less exposure than than many companies. Related Videos Market's 'fuel' for further P/E expansion is 'nearing empty' Nvidia's TSMC order, Eli Lilly & Novo Nordisk sink, JPMorgan & Apple card Royal Caribbean, Merck, FuboTV: Trending Tickers Why Spotify stock is sinking double digits on Q2 earnings Sign in to access your portfolio
Tom's Guide
2 hours ago
- Tom's Guide
Prime Video is a one-stop shop for the best video streaming subscriptions
Streaming video on demand has revolutionized the way we consume movies and TV shows, allowing us to binge-watch our favorite shows on repeat or stretch out a new season for a slow burn. The problem, however, is that nearly every hit movie or show is tied to a different app subscription. When I just want to sit down and relax, juggling multiple apps just to find a show can be a vibe killer. Thankfully, Prime Video offers a unique solution that allows us to manage multiple subscriptions and view content in one handy app. When I hear the name Prime Video, I immediately think about what the subscription streamer has to offer in the way of original content. Hit shows like Fallout and The Boys spring to mind, as well as quick access to new movies that I can rent or buy and then watch at my own leisure. Prime Video has so much more to offer, though. My friends keep telling me I should check out Yellowjackets, available on Showtime. With the Prime Video app, I can search for the series and watch teasers for the show or even an entire episode for free. If I want to keep watching, I can simply subscribe to Paramount+ within the Prime Video app and continue my binge-watching spree — all without ever needing to download and launch another app or visit a second website. I might even get lucky and find a 7-day free trial waiting for me. If Yellowjackets isn't scratching the itch, I can decide instead to check out the wholesome Emmy-winning series Ted Lasso on Apple TV+. I can subscribe to Apple TV+ right inside Prime Video (and get a good deal with a 2-month trial run at $4.99 a month, then just $9.99 a month after that.) Prime Video subscriptions provide a unique opportunity to mix and match your content to your specific tastes. Maybe you're looking for your comfort anime and just want to binge Fruits Basket on Crunchyroll (available for just 99 cents the first two months, then $11.99 a month thereafter) or maybe you want to expand your options with a blast from the past like Vampire Hunter D on HiDive. Sometimes chilling out with a PBS Documentary or BBC Select documentary can help you wind down for the night, or you can spice up your evenings with a new romance from Passionflix or Hallmark+. Regardless of where your entertainment interests lie, you can add your subscription (or subscriptions, we don't judge!) of choice to your Prime Video viewing lineup and have even more access to the best movies and shows streaming has to offer. Subscriptions on Prime Video prove you really can have it all in today's digital entertainment and streaming landscape. A simple search in the Prime Video app brings up a near-endless supply of new and classic movies, documentaries, reality TV, and award-winning series that I can't wait to tell all my friends to watch next. It's all available in one neat little hub that is easy to manage, allowing me to subscribe and unsubscribe as my tastes and viewing preferences change. The Prime Video hub makes it easy to keep track of how much I'm spending on my subscriptions so that I'm not surprised by unexpected renewals. With all these great deals on add-on subscriptions, I can feel free to try out new series and movies without any obligation for a long-term subscription. If you're tired of downloading and juggling a new app for every show you want to watch, give Prime Video subscriptions a try.
Hypebeast
2 hours ago
- Hypebeast
Tour The East London Office of an Architecture Communications Studio
In one of a few quiet spaces in East London's Shoreditch, architecture communications studioSALThas opened the doors to its new office space, which has been designed byTHISS Studio. With a brief to use 'as much reused material as possible', the design studio set about creating an open plan office that could transition into an event space or photography studio, with waste-saving solutions at its core. Expert-level scavenging was employed, with anything no longer needed being rehomed. The giant tables around which the space is centered are made from old steel catering tables, with the legs cut down to size and placed on casters. A worktop was crafted from leftover cork and white American oak trim – both saved from landfill. Rather than having a fixed meeting room, spaces are created with a huge linen curtain by London-based textile designerGeorgia Bosson, who sourced the end-of-roll fabric from an Irish mill. If not made from scratch from scrap material, furniture is second-hand, such as the bookcase shelving, which came via Gumtree and was once used in a butcher's. Colour is introduced across the columns and beams, which were coated in a rust-toned hue by sustainable paint brand Bleo. In a nod to the building's history, the floors have simply been sanded back and sealed with a matte varnish. 'We shared a commitment to minimising the use of virgin materials, and turning that ideal into reality required a collaborative, flexible design approach,' said Tamsin Hanke, Director at THISS Studio. 'The constraints actually became opportunities—introducing productive friction that sparked creativity and innovation, rather than assuming all materials were readily available.' 'Our new space is as much for our community as it is for SALT,' said Celeste Bolte, Founding Director at SALT. Head to the gallery above to take a look around.
