Snap earnings data ‘doesn’t do well for confidence’

Snap earnings data ‘doesn’t do well for confidence’: Sir Martin Sorrell

Sir Martin Sorrell, founder of WPP plc, speaks with Yahoo Finance's Brian Sozzi at the World Economic Forum (WEF) in Davos, Switzerland about key themes at the conference, the state of the advertising industry, Snap earnings, and Apple rule changes.

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Snap earnings data ‘doesn’t do well for confidence’: Sir Martin Sorrell

Sat, May 28, 2022, 5:02 AM

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Video Transcript

SEANA SMITH: Our coverage of the World Economic Forum in Davos, Switzerland. And our own Brian Sozzi spoke with s4 Capital founder and CEO, Sir Martin Sorrell, got his take on the recent downturn in tech stocks. But first he asked him about the focus of the conversations at the conference. Let's take a listen.

MARTIN SORRELL: Two big issues-- the war and US-China relations. I think everything else is sort of really taken a little bit of backseat. Things like climate change, obviously, front and center around everybody's agenda. But in these conversations, I think the two issues that people are focused on is the war and US-China. And the lack of relationship between the US and China, I think, is particularly troubling.

Obviously, Ukraine and Russia-- the Russian economy's about $1 and 1/2 trillion. The Chinese economy is a totally different level, around $14 or $15 trillion. So I think that's where people's minds are.

BRIAN SOZZI: A lot of talk coming into this event was potential US recession, is Europe in a recession? But then mid-week, we got thrown a real curveball, and that's Snap results. And I think cast a lot of dark clouds.

MARTIN SORRELL: Well, you've got to look at two things. You're talking about the digital economy and a recession. Those are two different things.

BRIAN SOZZI: What did that report-- as a advertising legend, what did that Snap report tell you about the state of the industry?

MARTIN SORRELL: Well, you can't generalize from a Snap. You have to remember that Snap, in the order of things, is about $5 billion, $5 and 1/2 billion in terms of ad revenues. The global ad revenues last year were $450 billion and are forecast to grow this year still despite GDP growth rates coming down from 4% to 5% to, say, 3%, 3%-plus. The IMF, the World Bank are at 3%-plus and may take it down further.

Snap earnings data ‘doesn’t do well for confidence’: Sir Martin Sorrell