Shares in FTSE 100 media large WPP (LSE: WPP) soared to over 1,900p in 2017, however have since slumped to round 500p.

We noticed a short restoration after the 2020 inventory market crash. However WPP is the worst Footsie performer up to now in 2025, shedding a 3rd of its worth yr up to now. Hmm, perhaps I ought to mud off my contrarian purchase button.

What’s improper now?

On 9 June the corporate introduced the pending departure of CEO Mark Learn, who took over from Sir Martin Sorrell in 2018. It appears he “determined that the time is true for him at hand over to a brand new chief and the seek for a successor is underway“.

Does this sounds a bit sudden, and perhaps not properly ready? I ponder if he’d have made the identical resolution had the corporate not simply misplaced a $1.7bn Mars media deal? And if it hadn’t additionally misplaced large contracts with Pfizer and Coca-Cola? Some sources are suggesting his days have been numbered.

However doesn’t it imply we needs to be contemplating promoting WPP shares? And that I is likely to be mad to think about shopping for?

Unhealthy instances make unhealthy decisons

We’re at the moment nonetheless affected by inflation and excessive rates of interest. And we simply heard that the UK financial system shrank 0.3% in April. The US is in some turmoil too, with inflation fears rising on the again of President Trump’s aggressive strategy to worldwide commerce.

That is certainly a time when corporations have increased priorities than advertising, promoting, and media spend. And that in flip should make short-term information a poor indicator of whether or not we should always take into account shopping for shares in a sector like this.

And isn’t that when contrarian buyers who see long-term attraction ought to take into consideration leaping in and shopping for, whereas a inventory is down?

What are the points of interest?

There’s a forecast dividend yield of seven% at WPP, boosted by the fallen share price. Locking in that sort of return may very well be properly worthwhile. However it depends upon whether or not the dividend is more likely to be sustained.

Forecasts at the moment counsel it will likely be, at the least till 2027. And that it needs to be solidly lined by earnings. Analysts additionally assume earnings will develop within the subsequent three years. However I ponder in the event that they is likely to be a bit outdated now and will cut back after they get their heads spherical the newest outlook? That’s a hazard.

Most brokers have WPP as a Maintain, regardless of setting a price goal vary of 520p to 740p — with the shares at 550p on the time of writing. It suggests their ideas are dominated by uncertainty proper now they usually don’t need to commit.

What to do?

WPP wants to reply to a altering enterprise. And it’s one by which synthetic intelligence (AI) is more likely to play an rising half. Might that open competitors to leaner and smarter AI-based operations? It’s doable WPP might go the best way of dinosaurs.

However expertise constructed up over many years ought to nonetheless depend for lots. And for many who see a worthwhile long-term future for this sort of enterprise, WPP certainly needs to be one to contemplate for a possible (dangerous) restoration purchase.