Jim Cramer Cautious on Omnicom Over Mark Zuckerberg's Ad Plans

Omnicom Group Inc. (NYSE:OMC) is one of the 15 stocks that Jim Cramer recently talked about. When a caller mentioned that they have been looking at Omnicom Group Inc. (NYSE:OMC), Cramer remarked:

“Yeah, I know it looks cheap, sir, but I’ve gotta tell you that when I read what Mark Zuckerberg has to say, you know, and look, he runs Meta, big company, he’s talking about disintermediating ad firms, and I’m afraid that he’s too powerful. I would not go against him.”

Omnicom (NYSE:OMC) provides advertising, marketing, and communications services, including media, branding, digital strategies, public relations, and experiential marketing to support diverse business needs. Fiduciary Management Inc. stated the following regarding Omnicom Group Inc. (NYSE:OMC) in its Q4 2024 investor letter:

“Omnicom Group Inc. (NYSE:OMC) is one of the world’s largest advertising holding companies. The business is capital light, generates above-average ROICs, has strong free cash flow, and there is a good deal of flexibility in the cost structure. The long-term case for the ad agencies has been built upon their independent expertise for creativity, media planning, buying, and targeting in a complex, fragmented, and rapidly evolving advertising landscape. In December, Omnicom announced it will merge with Interpublic Group in an industry altering move. We believe there are significant integration risks, including client and talent defections. This moves counters our strategic preference based on an inward focus and the return of excess capital to shareholders. We sold our 2.7% position in Dec 2024.”

While we acknowledge the potential of OMC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.