When the share price of a well-known brand plummets, it can be tempting to think you’re getting a bargain. Sadly, it often doesn’t end up that way. Nine times out of ten, shares are cheap for a reason.
ITV ticks many of the boxes of a value trap. It’s predominantly a linear broadcaster, in a world where streaming is king, and generates most of its money from advertisers, who have plenty of other ways to reach audiences and cut budgets when the economy wobbles.
Well-run companies adapt with the times. Unfortunately, ITV was slow to react and is now paying the price. The likes of Netflix burst onto the scene over a decade ago with great content and a more user-friendly way to view it.
