Equities Update: WPP, BP, Astra Zenica, GSK, Aston Martin, Microsoft, Amazon…

WPP reiterated annual guidance despite China exposure amplifying decline

Mark Crouch, market analyst at eToro, says: “WPP reiterated annual guidance in its latest trading update, reassuring investors that any tariff fallout has had little effect on the company, yet the same cannot be said for WPP’s client base.

“It’s no secret that advertising is often the first casualty in periods of economic downturn, and tariffs or no tariffs, any macro uncertainty has pressured businesses into tightening their belts, translating it to falling revenue for WPP.

“The advertising group’s shares have plummeted in 2025 and exposure to China has been pointed out to be the reason for the amplified decline. With 20% of WPP’s revenue coming from China, the steep drop-off in performance in the region has hurt the business.

Perhaps most concerning for WPP shareholders is the lack of resilience that the company has shown in view of the uncertainty. While profits have been sliding, they’ve arguably been through harder times in the past, most recently COVID. It will concern investors if they have not learnt lessons on how to shore things up in case a similar situation arises.”

BP profit miss exposes supermajors’ miscalculation 

Mark Crouch, market analyst at eToro, says: “BP’s Q1 earnings update was, as expected, weak and underwhelming. The UK supermajor once again missed profit targets for the quarter, however, there does appear to be a silver lining. With Elliott Management now on board, falling oil prices might prove to be a blessing in disguise, exposing the company’s underlying vulnerabilities and reinforcing the critical role fossil fuels still play in its long-term future.

“Regardless of one’s stance on fossil fuels, one thing is clear, renewables have not delivered as expected for BP, dealing a notable blow to its share price. With Elliott now holding a commanding voice at the table, BP has laid its cards on the table, with plans to increase fossil fuel investments to $10bn though 2027, an abrupt U-turn back towards oil and gas.

“Investors will hope BP have not left it too late though, as it appears the company’s struggles have caught the attention of rivals, who, if rumours are to be believed, are eyeing up BP in what could become a high-stakes takeover attempt, looking to capitalise on BP’s costly miscalculation.”

Revenue miss sees Astra shares slip

Adam Vettese, market analyst at eToro says: “AstraZeneca’s revenue has come in slightly below estimates despite some bright spots in certain areas, particularly in oncology with Enhertu and Tagrisso. The revenue miss may have tempered investor enthusiasm, as growth has slowed in comparison to last year with shares trading lower this morning.

“The company reiterated its full-year 2025 guidance, projecting high single-digit revenue growth and low double-digit core EPS growth. While maintaining guidance signals confidence, the lack of an upward revision, despite a strong EPS beat, may disappoint investors expecting more ambition, especially given 2024’s multiple upward adjustments.

“The pipeline looks strong, with seven medicines expected to deliver Phase 3 data. In addition, investments in transformative technologies such as cell therapies are expected to serve as catalysts to help the firm reach its $80 billion revenue target by 2030.

“It may be premature to raise concerns about AstraZeneca, but some risks do loom, including fines in China and the potential impact of tariffs. Investors will want to see revenue numbers back on track in time to see some gains this year after a disappointing performance so far.”

A healthy start from GSK, however tariff uncertainty looms

Mark Crouch, market analyst at eToro, says: “[BP%20and%20AstraZeneca’s%20earnings%20-%20eToro%20analyst%20commentary]GSK posted a Q1 earnings beat this morning, with rising profits and sales driven by continued growth in its Specialty Medicines division. Still, clouds of uncertainty are gathering over the pharmaceutical sector, and GSK is not immune.

“The looming threat of tariffs on pharmaceutical imports to the U.S. has shaken the sector. And although GSK maintains it is well positioned to manage the impact, the potential fallout remains unknown. Coupled with the current U.S. administration’s combative stance on vaccines, the road ahead looks anything but smooth.

“While the results were solid, many investors had hoped for more following the spin-off of its consumer healthcare arm, Haleon, nearly three years ago. Yet, the share price has remained largely flat, mirroring its performance over the past decade.”

Aston Martin narrows loss as expenses are controlled

Adam Vettese, market analyst at eToro says: “Undoubtedly an iconic brand, though less of an iconic investment in recent times, Aston Martin may be showing signs that its transformation is showing progress as they have reported a narrower than expected loss for Q1.

“The firm has had no choice but to overhaul production and cost controls, having previously been burning through cash while the stock price remained in free fall. Although there is still a very long way to go, this morning’s beat will be welcomed by investors.

“There are issues that still remain. Tariff policies in the US will be a disappointment not only to anyone across the pond who would like the same set of wheels as James Bond, but also to the company as it puts a key market at risk.”

Microsoft Q3 earnings preview

Josh Gilbert, market analyst at eToro, says: “After a less-than-magnificent performance in 2024, investors will be hoping 2025 fares much better for Microsoft. The tech giant hands down its fiscal Q3 earnings in the US tonight. Following solid results from Alphabet last week, expectations will be high.

“One of the key takeaways for investors will be CapEx and Microsoft’s data centre spending plans. Microsoft said that it plans to invest USD$80 billion through the fiscal year, with a focus on AI and cloud infrastructure. However, Microsoft has recently backed away from new data centre projects, leaving question marks over demand, so commentary tonight around how demand is holding up will be vital for shares.

“Yes, they’re spending big, but it’s what’s needed to stay ahead. And it’s worth remembering they’ve got the balance sheet to back it up. Microsoft’s cash pile is expected to hit USD$78 billion this quarter. Additionally, the company announced a 10% dividend increase last year, marking 15 consecutive years of growth. While heavy spending may weigh on margins in the short term, Microsoft’s ability to generate high returns on capital and sustained revenue growth should help ease concerns.

“Market expectations are for USD$68.5 billion of revenue (up 11% YoY) with earnings of USD$3.21. Microsoft has a solid track record when it comes to beating expectations, having missed earnings estimates only once since 2016. But that’s not what moves shares these days. Its growth is in its cloud computing segment, Azure, and that’s where the market’s attention will be. Consensus is for 30% constant currency growth from Azure. A beat in this segment alongside positive commentary would send shares higher. With robust commercial bookings and strength from OpenAI in the quarter likely contributing more to Azure Growth, that result could very well be on the cards.

“Although the focus is on cloud and AI, the market will also want to hear commentary from management about how a potential slowdown in the global economy due to tariff-related turmoil will affect the business, particularly enterprise demand, new PC and office sales, and gaming.

“Microsoft’s results will be closely watched as a gauge for the broader tech sector, especially when it comes to growth tied to artificial intelligence. Investors will want to hear more about CapEx plans, where demand is heading and how it’s turning its AI push into actual revenue. For those with a longer-term view, staying patient could pay off as the company’s big investments take time to deliver.”

Amazon earnings preview

Lale Akoner, Global market analyst at eToro, says: “Amazon finishes Q1 on relatively stable footing, supported by strong March promotions and a resilient customer base. While macro pressures remain, seasonal tailwinds from their Spring Deal Days likely helped bolster near-term revenue. The company’s high-margin advertising business, generating roughly 90% gross and 50–55% operating margins, continues to be a key profit driver, even though growth in that segment is expected to slow to high single digits in 2025 from 19% last year, as retail media advertisers pull back amid elevated US-China trade tensions.

“On the AWS front, growth is expected to remain solid in AI-related services. However, the core cloud business, which still accounts for over 95% of AWS revenue, may face headwinds as enterprise clients tighten IT budgets in an uncertain economic climate. This divergence is something investors are increasingly focused on.

“More broadly, the market’s attention has shifted from backward-looking results to forward-looking strategy. As questions grow around the returns on massive AI investments and the fallout from escalating trade tensions, Amazon’s commentary on capital allocation, pricing strategy, and margin protection will likely carry more weight than earnings alone.

“Though investor sentiment has softened since the announcement of new US-China tariffs on April 2, Amazon’s scale offers it some insulation. Its large supplier network and pricing power could help mitigate cost pressures, at least partially. That said, the impact of tariffs is more likely to weigh on Q3 performance, making Q2 guidance less reflective of full-year risks.

“Overall, Amazon remains a margin expansion story, though likely at a more gradual pace than previously expected. The company’s ability to maintain customer engagement, manage rising costs, and articulate a clear path forward will be key to sustaining investor confidence through the second half of 2025.”