2024-03-24 22:59:14 ET
Summary
- I'm downgrading my rating on Omnicom Group due to less appealing fundamentals and market trends in the advertising industry.
- I use this article to express skepticism about the effectiveness of online advertising and highlight issues such as click fraud and failed advertising campaigns.
- I believe that Omnicom's valuation is no longer attractive and does not offer a significant upside for investors.
- I'm downgrading the company, and showing you why I would wait to invest more here.
Dear readers/followers,
I've covered Omnicom Group ( OMC ) and other advertising giants before, buying them during trough valuation and selling them at attractive prices. In my last article, which by the way you can find here , I made a point for why Omnicom represented a "BUY" but not the "best" buy out there. This article was published well over a year ago at this point. Here is the return since that time, and while you can see that we're up since then, we're not up that much overall - confirming what I saw as a relatively "poor" upside all things considered.
To say that the advertising space has "changed", would be an absolutely colossal understatement. I would say that for myself, I would not invest in any but the market-leading, top-tier firms out of the sheer necessity of scale to make any sort of serious money or returns in this business - that is how I see it. That is why my investment targets include companies like OMC, but also companies like French Publicis Groupe ( OTCQX:PUBGY ), as well as Interpublic ( IPG )....
Read the full article on Seeking Alpha
For further details see:
Omnicom - Neither Undervalued Nor A 'Buy' At Over $90/Share