WPP share price has been in a freefall this year, making it one the top laggards in the UK stock market. It dropped to a low of 265p in November, down by 68% from its highest level in 2024. It is now hovering near its lowest level since 2021 and is down by 75% from its all-time high.

WPP stock price has crashed because of the AI disruption 

WPP, the biggest player in the advertising and public relations industry, has come under pressure in the past few years as concerns about the AI disruption have remained.

This disruption has affected most of its businesses, including popular brands like Ogilvy, VML, Grey, and MindShare. It has also made it to exit the blue-chip FTSE 100 Index, which tracks the biggest companies in the UK.

The most recent results showed that WPP’s business continued to deteriorate in the third quarter, which the management blamed on client losses and client spending cuts. 

Its revenue dropped by 8.4% to £3.2 billion, while its revenue less pass-through costs dropped by 11.1% to £2.49 billion. This slowdown brought the year-to-date revenue to £9.92 billion, down by 8% from the same period. 

Worse, the management warned that the annual revenue will be worse than its previous guidance, continuing a weakness that has been going on for years. It now expects that the like-for-like growth for the year will be between minus 5.5% to 6.0%.

All businesses in its ecosystem remained under pressure during the quarter. It’s Global Integrated Agencies, which is made up of its media planning and buying businesses, saw its revenue drop, with the company blaming its weak performance in Germany and China. 

The same decline happened in its public relations and its specialist agencies businesses. This is also happening across its geographical regions, with North America, the UK, Europe, and the rest of the world.

WPP’s slowdown will likely continue in the foreseeable future as the advertising and marketing industries change. Today, most companies are focusing their advertising budgets on the digital segment, an area where WPP is struggling to monetize. 

WPP has become cheap and a buyout target

On the positive side, the ongoing WPP share price crash has made it a cheap company trading with a forward price-to-earnings ratio of just 5.

This cheapness may make it a good acquisition target. Just recently, there were rumors that it was eying a merger with Havas, in a deal that would be backed by private equity companies. 

Hopes for a deal rose after the merger of Omnicom and IPG, two of its biggest competitors. Omnicom is now planning to cut 4,000 jobs and shutter some of IPG’s ad firms, a move intended to make it a more formidable competitor to WPP.

WPP would likely make a good buyout target because of the potential to improve its operations through intrabrand mergers. It also has over 104,000 employees globally and a presence in low-profitable markets.

WPP share price technical analysis

The weekly timeframe chart shows that the WPP stock price has been in a strong bearish trend in the past few years. It has collapsed from the pandemic high of 1,004p in 2022 to the current 335p, a move that has erased billions of pounds in value.

WPP stock dropped below the key support level at 584p, its lowest level in September 2022 and October 2023. It remains below all moving averages. 

Therefore, the most likely WPP share price forecast is mildly bullish with the hope that it will receive an acquisition offer in 2026. However, the stock may keep falling if a deal does not materialize.

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The Rheinmetall share price has lost momentum in the past few months and has formed a risky pattern, pointing to an eventual pullback in the near term. RHM stock was trading at €1,543, down by 23% from its highest point this year. 

Rheinmetall share price has formed an alarming pattern

The weekly timeframe chart shows that the RHM stock price has been in a strong bull run in the past few years. This surge pushed its market capitalization from below €3 billion in 2021 to a record high of over €90 billion. Its valuation has now pulled back to the current €73 billion. 

A closer look at this chart shows that the stock has formed a double-top pattern at €1,940 and a neckline at €1,481. A double-top pattern is one of the most bearish signs in technical analysis. 

This pattern has a height of €460, which is calculated by subtracting the double-top section from the neckline. In this case, subtracting this height from the neckline gives it a target of €1,022, which is about 30% below the current level. This price coincides with the 50% Fibonacci Retracement level.

On the other hand, a move above the key resistance level at €1,700 will invalidate the bearish outlook.

Rheinmetall’s business is doing well

The bearish Rheinmetall share price forecast is based on its technicals, with its fundamentals doing well.

For example, the company received a major order for its Remote Controlled Howitzer valued at over €1.2 billion. In this order, the company will supply the electrical systems, software, and the 155 mm weapon systems starting from 2027. 

This order came a few days after the German government place an order for the Puma fleet in a deal worth €4.2 billion. It will receive €2.1 billion, while KNDS, its partner in this project, receives the rest.

It also received a €1.7 billion order from the German Armed Forces for its space-based reconnaissance data in a deal valued at over €1.7 billion. 

This order growth will likely continue in the coming years as Europe boosts its defense spending. This spending is part of the bloc’s approach to ReBuild, ReArm, and ReEquip. As a result, the management has expanded its business portfolio in areas like vehicle systems, air defence, digital, and naval. 

Additionally, the company is benefiting from the ongoing ramp-up in defense spending, with NATO aiming for 5% of GDP. Germany aims to get to 3.5%

All these events will lead to more demand and revenue growth over time. Indeed, the management recently predicted that its revenue will jump fivefold to 50 billion euros by 2030.

The most recent results showed that its revenue rose by 20% to €7.5 billion as its backlog surged to €64 billion. The management expects that its revenue growth for the year will be between 25% and 30%.

Still, there are concerns that the company’s business has become highly overvalued. Its price-to-earnings (PE) ratio rose to 82, much higher than the median estimate of 25. Also, its forward EV to EBIT multiple of 36 was higher than the sector median of 17.5.

This valuation, together with the double-top pattern, points to more downside in the near term. 

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Rivian stock price continued its strong bull run, reaching a high of $20.30, up by 113% from its lowest level this year. It has jumped to the highest level since January 2024, bringing its market capitalization to over $24 billion. This article explores why the RIVN stock price is soaring and what to expect in the near term.

Rivian stock price has soared after its investor day 

The RIVN stock price has done well in a difficult year in which Donald Trump ended subsidies to electric vehicles and the EV tax credit that brought it millions of dollars a year. 

There are a few reasons why Rivian shares have gone parabolic despite these major headwinds. First, the company has received some bullish ratings from analysts in the past few days. For example, George Gianarikas, a top analyst from Baird, boosted his rating from neutral to outperform and his target from $15 to $24. 

George Gianarikas, an analyst from Canaccord Genuity, reiterated his bullish estimate. Evercore ISI has an outperform rating on the company. 

Still, the average estimate by analysts is bearish, with the target being $15.34, down by 24% from the current level. 

Rivian stock price has also done well after holding its investor day earlier this month. The company shared that it had developed its autonomous chip and AI chip. By building the chip in-house, the company hopes that it will have the best vehicles in the country.

Therefore, there are hope that the company is becoming an AI and autonomous firm that will challenge the likes of Tesla

Meanwhile, investors are cheering the upcoming launch of Rivian R2, which will be a cheaper vehicle starting at $45,000. The deliveries are expected to start in the second half of next year. It will be much cheaper than the current R1 lineup, which starts at $76,990, and the R1T that starts at $72,990.

Rivian reported strong results

The RIVN stock price has also done well after the company published strong financial results. Its revenue rose by 78% in the last quarter as customers rushed to buy ahead of the tax credit expiry.

Its revenue jumped by 78% to $1.55 billion, a sign that the company is seeing strong demand. Its automotive revenue rose by 47% to $1.14 billion, while the software and services revenue rose by 324% to $416 million.

The company had a gross profit of $4 million, even as the automotive segment lost $249 million.

Meanwhile, analysts believe that the company’s revenue in the current quarter will be $1.27 billion, down by 26.7% from the same period last year. This will bring its annual revenue to $5.37 billion, up by 8% from the same period last year. 

Rivian’s revenue is expected to jump by 27% to $6.85 billion in the following year despite the loss of the EV credit. 

However, the risk is that the company will continue making huge losses, which may push it to raise capital. Its outstanding shares have jumped from 913 million in 2022 to 1.22 billion today.

RIVN stock price technical analysis 

RIVN stock chart | Source: TradingView

The daily chart shows that the RIVN stock price has soared from a low of $8.26 in April last year to the current $20.30. It has now moved above the important resistance level at $18.80, the highest point in June 2024.

Rivian stock has moved above the 50-day and 100-day moving averages and the Supertrend indicators. Therefore, there are signs that the company has the momentum that may push it to the next key resistance level at $2522. 

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Accenture stock price has had a difficult year as concerns about its business continued. After initially soaring to a high of $392 in January, the ACN stock dropped to the current $270. Its market capitalization has dropped from the year-to-date high of $250 in February to the current $166 billion. 

Accenture stock has faced major headwinds this year

The ACN stock price has come under pressure this year, mirroring the performance of other consulting companies like Tata Consultancy, Cognizant, and Infosys.

Accenture, one of the biggest IT consulting companies, faced headwinds as Elon Musk’s DOGE moved to slash consulting services offered to the Federal government. This is notable as Accenture is one of the biggest companies in the industry and has many contracts with the government.

Most recently, the company’s name was on the list of an X post circulated by the USTR. In it, the agency was warning the EU against its large fines to American technology companies. It hinted that the US would target these European firms in investigations and fines. 

Accenture’s business has slowed this year as companies have moved to save money because of Donald Trump’s tariffs. However, the company is seeing demand as companies from many countries implement artificial intelligence in their operations. It recently partnered with OpenAI and Anthropic, two of the biggest companies in the AI industry.

The most recent results showed that the company’s business was improving. Its new bookings jumped to $20.9 billion, up by 12% from the same period last year, driven by $2.2 billion in fresh bookings from the AI sector. Julie Sweet, the CEO, said:

“We also strengthened our leadership in advanced AI and deepened our ecosystem partnerships to help clients realize value. These results reflect our strategy to be the reinvention partner of choice for our clients.”

Accenture’s revenue rose to $18.7 billion, up by 6% from the same period last year, while its operating margin eased a bit to 15.3%. Its revenue numbers were much better than what analysts were expecting.

The company’s two divisions, consulting and managed services, reported nearly the same numbers. Consulting revenue rose to $9.41 billion, while its managed services rose to $9.33 billion.

Accenture maintained its forward guidance and now expects that its full-year revenue growth will be between 2% and 5% in constant currency.

The bullish case for ACN

There are a few reasons why the Accenture stock price may continue doing well in the coming months.

First, the company’s business is doing well despite the ongoing challenges. Its recent results and analyst guidance evidences this. 

Analysts expect that the second quarter revenue will be $17.79 billion, up by 6.79% from the same period last year. Its annual revenue in the next two financial years will be $73.64 billion and $77.68 billion, respectively. The average stock target among analysts is $288, with Morgan Stanley boosting the target to $320. zzz

Second, the company will benefit as companies across all sectors continue increasing their investments in the AI industry. This growth could mirror what happened during the implementation of cloud computing technology.

Third, the company has become a bargain. It has a forward PE ratio of 19.8, lower than the sector median of 23 and its five-year average of 27.

Finally, the fears of reduced government spending have been exaggerated, meaning that the company will likely continue receiving more contracts in the near future.

Accenture share price technical analysis 

The daily timeframe chart shows that the ACN stock price has rebounded from the year-to-date low of $225 to the current $270. It has moved above the 23.6% Fibonacci Retracement level at $265.

The stock has also formed a small inverted head-and-shoulders pattern, which is one of the most popular bullish reversal signs. It has also moved above the 50-day Exponential Moving Average.

Therefore, the most likely scenario is where the stock continues rising, with the next key target being at $308, the 50% Fibonacci Retracement level, which is about 14.65% above the current level.

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Shopify stock price has had a strong performance this year as it jumped from the April low of $70 to the current $166. This growth happened as the company’s growth trajectory accelerated. So, is the highly overvalued company a good investment today?

Shopify revenue and profitability growth have continued

Shopify is a top company that powers the e-commerce business globally. Its platform makes it easier for people to build and manage their e-commerce stores.

It has a substantial market share in the sector, making it the default platform for building these sites. Its other competitors, like Wix and BigCommerce, have struggled to gain share over time.

READ MORE: BigCommerce vs Shopify stocks: Here’s why SHOP beats BIGC

The company’s growth has been strong, with its annual revenue moving from $205 milion in 2015 to over $10.6 billion in the trailing twelve months (TTM). 

Similarly, its profitability metrics have done well, moving from a net loss of $18 million to a profit of $2 billion last year. This growth will accelerate as more customers join and as its profitability continue.

Wall Street analysts expect that the company’s revenue will move to $211.46 billion this year followed by $14.1 bilion next year. The earnings per share, on the other hand, is expected to move from $1.45 this year to $1.85 next year. Shopify has a long history of beating analysts’ estimates.

SHOP valuation concerns have continued

The biggest concern about Shopify is that the company has always been highly overvalued because of its growing market share. Data compiled by Seeking Alpha shows that it has a valuation grade of D.

This is based on the fact that its forward price-to-earnings ratio of 111.27 based on non-GAAP measures. This metric is much higher than the sector median of 24. It is also higher than other growth companies like Nvidia and AMD. 

The company has a forward PE ratio of 202.65, much higher than the sector median of 30.8. This makes it one of the most overvalued companies in the United States.

The PE multiple compares a company’s stock price and its earnings per share (EPS). Its main challenge is that it does not factor in how fast the company is growing. As such, the PEG ratio is usually seen as a better way to look at a company. In this case, the company has a forward PEG ratio of 2.7, which is also higher than other companies  

Another way to value Shopify is known as the rule-of-40, which looks at a company’s revenue growth and its profitability metrics. In this case, the company has a forward revenue growth of 26% and a net profit margin of 16%, giving it a rule-of-40 metric of 42%.

This rule-of-40 figure means that the company is not all that overvalued, as it is balancing its revenue growth and its profitability goals.

Wall Street analysts are generally bullish on the company, with a price target of $177, which is higher than the current $166, making it a hold.

Shopify stock price technical analysis 

The daily timeframe chart shows that the SHOP stock price has moved sideways in the past few months. A closer look shows that it has formed a diamond pattern, a common bearish reversal sign. 

It has also formed a head-and-shoulders pattern, while the MACD and the Relative Strength Index (RSI) point to a bearish reversal sign.

Therefore, the stock will likely retreat in the coming weeks, potentially to the psychological level at $150. A move above the key resistance level at $181 will invalidate the bearish outlook, potentially to the key point at $200.

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XPeng stock price has nosedived in the past few weeks as investors have dumped Chinese EV companies. XPEV dropped to $18 in New York, down by 35% from its highest point this year. This article explores why it has crashed despite its strong numbers.

Why the Xpeng stock price has crashed

Xpeng stock price has dived in the past few weeks, mirroring the performance of other Chinese EV companies. 

Nio stock has dropped by 20% in the last 30 days, while Li Auto, and Leapmotor have slumped by over 15%.

Similarly, Xiaomi and BYD have also tumbled in the past few months. This decline is happening as investors remain wary about demand after many local governments ended or adjusted subsidies for EVs.

That move has led to more concerns that the demand will ease significantly in 2026, a move that will lead to lower profits as the price war continues.

The XPeng stock has also dropped as signs of weak demand in other markets emerge. Ford announced a $20 billion charge this week, while the European Union ended the 2035 combustion engine ban as the transition became slower than expected.

The new change is notable as XPeng and other companies are aiming to gain market share in the European Union, a region where they can receive a higher margin than in China.

READ MORE: Xpeng stock set for breakout as management takes aim at Tesla’s AI ambitions

Xpeng’s business is doing well 

Still, there are signs that XPeng will emerge from the ongoing slump better than other automakers because of its strong performance and the popularity of its brands like XPeng 7, G6, G9, and X9.

The most recent results showed that the company’s business was doing well, with its revenue and profitability having improved.

XPeng delivered 116,007 vehicles in the third quarter, from 46,533 in the same period last year. As a result, its revenue rose by 101% to $2.8 billion. Its revenue was also 11% higher than in the second quarter as customers rushed to buy ahead of the end of the subsidies.

The company’s gross margin expanded to 20.1%, much higher than other companies, including Tesla. Its gross margin moved from 13.1% in the same period last year.

As a result, it narrowed its losses, with its net loss coming in at $0.05 billion or RMB 0.38 billion, much better than the previous RMB 1.1 billion.

Analysts are optimistic that the company’s growth will continue, with the average revenue estimate for the fourth quarter being CNY 23.1 billion, up by 43% from the same period last year. This growth will bring its annual revenue to CNY 78 billion, up by 92% from the same period last year. It will then make CNY 112 billion in revenue in 2026 and an EPS of CNY 2.61.

XPeng stock price technical analysis 

The daily timeframe chart shows that the XPeng stock price has dropped sharply in the past few weeks, moving from a high of $28.3 to the current $18. 

This retreat happened after the stock formed a rising wedge pattern, which is a common bearish sign in technical analysis. 

It has now moved below the 50-day and 100-day Exponential Moving Averages (EMA), which made a bearish crossover pattern.

The Relative Strength Index (RSI) is nearing the oversold zone of 30, while the Awesome Oscillator has moved below the zero line.

Therefore, the most likely scenario is where the stock continues dropping to the key support at $15 and then resumes its uptrend as investors buy the dip. 

READ MORE: Hang Seng Tech Index slumps into a bear market as Nio, Xpeng, Li Auto slump

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The GE Vernova stock price suffered a harsh reversal as it plunged by over 10% in a single day. It bottomed at $614, down by 15% from its highest level this year, erasing some of the gains it made recently when it boosted its payouts to investors.

GE Vernova stock price drops amid AI concerns 

GE Vernova, a company that makes energy turbines, has come under pressure in the past few days as investors remain concerned about the AI industry.

The company has increasingly become an AI play because of the vast amount of energy needed to power data centers in the US and around the world.

This demand has helped to turn it from a traditional boring company into a growth one, with utilities seeking to boost their power output.

In its recent investor day event, the company boosted its forward guidance as its growth trajectory accelerated. It now expects that its revenue will surge to $58 billion in 2028, much higher than the previous guidance of $45 billion. It expects to make $37 billion and $42 billion this year and in 2026.

Most importantly, the expected growth trajectory will be accompanied by high margins, with the adjusted EBITDA margin moving from 9% this year to 20% in 2028.

The company also expects that the backlog will be $200 billion, up sharply from the previous guidance of $135 billion. This growth will partly be because of a sharp increase in its electrification business.

GE Vernova’s management expects to boost its free cash flow to $22 billion between 2025 and 2028, a move that will help it to boost its shareholder returns.

Indeed, the company has already boosted its dividend from $0.25 to $0.50 per share, and its share repurchases from $6 billion to $6 billion.

Therefore, the GE Vernova stock price has crashed as investors raise doubts about its highly ambitious goals amid fears that the AI bubble will pop. Such a move will, in theory, lead to project cancellations and slowdowns.

Concerns about the AI bubble have risen after some companies like Oracle and Broadcom published mixed financial results. Investors are worried that some of the large orders made by companies like OpenAI may disappoint over time. 

While the AI fears are real, chances are that a company like GE Vernova will not be affected because the rising power and energy demand will continue in the foreseeable future. 

The GE Vernova stock has also plunged as investors sell the recent news on dividends, buybacks, and share repurchases. This is a situation where investors buy an asset after a major announcement and then exit when it happens.

Most importantly, the company has received a tech-like valuation, with the forward price-to-earnings ratio rising to 97 and its Seeking Alpha valuation grade of F.

Meanwhile, analysts have mixed opinions on the company, especially on whether it will be able to achieve its goals. In a recent note, an analyst from Oppenheimer upgraded it from perform to outperform, while Seaport downgraded it from buy to neutral, citing its valuation.

GE Vernova stock price technical analysis 

The daily timeframe chart shows that the GEV stock price soared to a high of $730 earlier this month after boosting its revenue and guidance.

It then retreated to the current $614 as investors booked profits. The retreat brought it inside the bullish flag pattern that formed a few months ago.

That is a sign that it has formed a break-and-retest pattern, which is a common bullish sign. It has remained above the 50-day and 100-day Exponential Moving Averages.

Therefore, the stock will likely remain under pressure in the near term as the AI jitters continue. It will then bounce back and possibly hit the year-to-date high in the coming weeks or months.

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CoreWeave stock price continued its downward trend this week as investors remained concerned about the AI bubble. CRWV has dropped in the last four consecutive days, reaching its lowest level since May this year. It has slumped by ~65% from its highest point this year.

CoreWeave stock is facing elevated risks

CoreWeave, a top company in the AI infrastructure industry, has come under pressure in the past few months. After soaring to $186 earlier this year, it has slumped to $64, and the situation is getting worse by the day.

Concerns about the company and the industry have escalated after the recent Oracle earnings. While the topline figures were strong, the company reported a negative free cash flow and debt. 

Most importantly, investors are concerned about its remaining public obligations (RPO), which have jumped to a record $523 billion. Some analysts question whether this figure is real as some of its clients, especially OpenAI, are not yet profitable.

CoreWeave is facing similar concerns as it counts OpenAI as its biggest customer, with a significant market share of its huge backlog.

Meanwhile, investors are also concerned about its massive debt, which has jumped to $25 billion. It is using this debt to fund its data center infrastructure, with the management estimating that the capex will be between $12 billion and $14 billion. It also estimates that the figure will be more than double what it spent this year.

Competition in the neocloud industry is rising

The company is now contending with the rising competition in the neocloud industry. More companies have come up recently and started to take market share in the sector. 

For example, IREN, a Bitcoin miner, is investing heavily in the sector and has now received a $9.7 billion order from Microsoft. Hut 8 Mining received a huge order from Anthropic, the creator of Claude. 

Terawulf, another Bitcoin miner, received a large order from Google. Other companies that are slowly gaining market share are the likes of Lambda Labs and Nebius.

Estimates are that the demand for data center industry demand will continue rising in the coming years. In a note, McKinsey predicted that the projected data centers will need $6.7 trillion by 2030. It believes that capacity demand will keep rising, a move that will benefit a company like CoreWeave.

However, the risk is that the industry is now getting crowded, giving large hyperscalers a choice on the neocloud partner to use. It will also give them more negotiating power.

These concerns explain why the CoreWeave stock has crashed and why the short interest has soared to 10%.

CoreWeave share price technical analysis 

CRWV stock chart | Source: TradingView

The daily chart shows that the CRWV stock price has crashed in the past few months. Most recently, it dropped below the crucial support at $84.87, the neckline of the double-top pattern at $150. 

It has also moved below the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bears remain in control. It has dropped below the key support at $65, invalidating the double-bottom.

The Relative Strength Index (RSI) and the MACD indicators have all pointed downwards. This means that it may keep falling, potentially to the psychological level at $50.

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