Publicis Leads Tumble In European Media Stocks
The dive, on the last day of 2007 trading, comes three months after Publicis "delisted" its shares from the U.S. stock market in hopes it would alleviate it from onerous U.S. securities regulations and reporting requirements. Since making the change, shares of Publicis stock have been trading near the low end of their 52-week trading range ($35.15 vs. a high of $49.40).
The hit also comes as Publicis has dramatically refocused its growth around digital media and advertising businesses in an effort to generate more revenues from online media and interactive marketing services.
According to Bloomberg, Citigroup listed Publicis' stock among its "least favored in the media industry," and advised investors to "underweight" it because a near-term rise in ad spending is not likely.
Publicis is the parent of media networks such as Starcom MediaVest Group and ZenithOptimedia Group, and interactive marketing services shops like Digitas and Denuo.