Ad-dependent firms fall after hot inflation data fuels fears of ad budget cuts

CPI SA

13/07/2022 14:24

** Shares of ad-dependent companies, including social media
platforms and TV networks, fall after new data shows that
inflation in the U.S. hit record highs
    ** Consumer price index (CPI) rose 9.1% yoy in June, the
highest in 41 years; CPI jumped 8.6% in May
    ** Shares of Meta Platforms Inc  META.O  fall 2% premarket
    ** Snap Inc  SNAP.N  and Pinterest Inc  PINS.N  shares drop
1.8% to 3.5%; Alphabet Inc  GOOGL.O  stock down 2.3%
    ** Sustained high inflation will likely force companies to
conserve cash and further cut spending on advertising, the chief
source of revenue for social media and internet platforms
    ** In the last few months, agencies such as Magna, WPP and
GroupM have lowered their forecasts for digital ad growth in
2022 
    ** Shares of content networks Warner Bros Discover Inc
 WBD.O  and Comcast Corp  CMCSA.O  fall 1.6% to 1.9%

 (Reporting by Yuvraj Malik)
 ((yuvraj.malik@thomsonreuters.com))