WPP's Plunge Shatters a Nascent Revival for Media Stocks
- Sector rebound halted in its tracks as WPP cuts profit outlook
- Media shares were the best performers in Europe in February
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Just when it seemed like things were improving for advertising and media stocks, WPP Plc threw a big spanner in the works.
A 15 percent plunge in WPP brought an abrupt halt to a rally in Europe’s Stoxx 600 media index, which was the best performing of all sectors in February, gaining 0.4 percent despite a global market rout. The gauge fell the most since June 2016 on Thursday, with advertisers including Publicis Groupe SA and broadcasting stocks such as ITV Plc also getting hit. Interpublic Group of Cos Inc. and Omnicom Group Inc. will be a focus when U.S. markets open later.