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Aegis: 'Ad recession' to favor Google, Facebook; punish Snap, Twitter

Published 08/30/2017, 01:22 PM
© Reuters. Aegis: 'Ad recession' to favor Google, Facebook; punish Snap, Twitter
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  • Snap (SNAP +0.7%) and Twitter (TWTR +0.1%) could face blowback from a "looming advertising recession," Aegis Capital says, even while behemoth Google (GOOG +0.6%, GOOGL +0.7%) is likely to be insulated by its size.
  • Checking back with ad contacts after rough earnings from Interpublic Group (IPG -0.1%) and WPP (LON:WPP) (WPPGY -0.8%), analyst Victor Anthony says a source's outlook is still bleak: “Nothing has changed. ... We are at the early stages of an ad recession that is going to get worse for just about everyone not named Google and Facebook (FB +0.8%)."
  • "We find it hard to envision that CPG companies (food, beverage, personal care, & household), who are big brand advertisers online, and based on comments from IPG, Omnicom, and WPP, are under pressure, would not trim their online ad spend in the event of an ad recession," Anthony writes.
  • Aegis has Buys on Alphabet and Facebook, but SNAP is a Hold and TWTR a Sell.
  • Now read: Snap: The Next Twitter?


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