Ad group WPP shares plunge 16% on China weakness and US uncertainty
WPP expects its revenue and profit to be flat at best this year because of a weak Chinese market and uncertainty in the United States, it said on Thursday, as its shares hit a four-year low following disappointing results.
For 2024, WPP reported a 1.0% fall in organic revenue, missing analysts forecasts of a 0.4% drop. Its shares fell 16%.
Advertising is typically one of the first victims of company cost-cutting in difficult times and CEO Mark Read said there were many reasons for caution, especially the threat of U.S. tariffs.
«The new administration wants to get America growing strongly, but there's no doubt that tariffs and subsequent inflation is making people nervous,» Read said in an interview.
Overall, Read called it a «tough market» but one possible growth area for the business is the X platform owned by Elon Musk, who has a prominent role in President Donald Trump's administration.
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