advertisement
advertisement

WPP’s market cap just dropped by $2.6 billion as tech giants disrupt everything

WPP’s market cap just dropped by $2.6 billion as tech giants disrupt everything
[Photo: energepic.com/Pexels]

When WPP reported less-than stellar 2017 earnings this morning, its weakest underlying revenue growth since 2009, it caused the stock to drop by 13%–it’s biggest decline since 1998–wiping about $2.6 billion off its market cap.

As the world’s largest advertising corporation, parent company to ad agencies like J. Walter Thompson and Grey, as well as media agency giants Mindshare and MediaCom, WPP has been affected by not only a cutback in ad spending by major marketers like Unilever and P&G, but also major media disruption and consolidation led by what CEO Martin Sorrell called the “fearsome seven”: Amazon, Google, Facebook, Microsoft, Netflix, Alibaba, and Tencent.

Sorrell told CNBC, “We have to simplify how we operate, we have to be faster and better and cheaper in a world which is obviously being disrupted by technological developments, whether you are talking about manufacturing, media, or distribution, so we have to change the way we do things, simplify things.”

advertisement
advertisement