S4 (LON: SFOR) share price has plummeted by 22% from its last week’s low. This plunge was caused after the advertising company lowered its full-year guidance. The shares of S4 Capital are currently trading at 75.35p, up 0.87% till press time.
TDue to the bullish sentiment experienced in the UK equities, S4 shares rebounded by 5.48% on Tuesday. The FTSE 100 index, which is a benchmark for the top 100 performing UK companies, gained 7.8 points on Tuesday. The FTSE 250 also gained 77.3 points and was up by 0.42% till press time.
S4 Capital Cuts Jobs Amid Rising Costs
On 18th September, 500 employees were made redundant from S4 Capital. The digital marketing group listed inflation in staff costs and higher IT costs as the reasons for the job cuts. The company also announced a reduction in the expected revenue that caused £120 million to be wiped off its Capital’s market capitalization.
The executive chair of S4 Capital listed the global macroeconomic conditions and the fear of recession as the major headwinds in 2023. He also announced that the digital media group expects a 1% reduction in revenue for the year. The profit margin is also likely to slip to 12% instead of the previously expected 14.5%. S4 shares are down 91% from its yearly high.
S4 Capital Share Price Forecast
A look at the LON: SFOR chart reveals that the price is trading 33% below the key support level of 114p and hit its lowest level on Monday. The chart also reveals the price to be sitting 50% below the 200 MA, which further contributes to the bearish outlook.
Due to the price breaking below the historic support level of 114p, the S4 share price forecast has flipped bearish. I expect the outlook to remain bearish until the reclaim of 114p level. In case of a rebound in price, I expect the price to fill the 80p-94p price gap in the coming days.
In the meantime, I’ll keep sharing updated S4 analysis and my personal trades on my Twitter, where you are welcome to follow me.