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I don’t rely on large language models like ChatGPT for financial advice about FTSE 100 stocks and the like. The technology makes too many mistakes and has too many hallucinations for me to count on it. But that doesn’t mean my eager-to-please buddy can’t be used for a bit of fun or to get the cogs whirring.
That’s why I asked It to tell me the FTSE 100’s worst stock to buy for September 2026. And goodness me, did I get a shock from its answer!
Worst stock?
Here’s what it said: “If you mean ‘which FTSE 100 stock would I be most cautious about buying right now?”’ my pick would be Ocado Group (OCDO).”
Ocado? The online grocery shopping service that isn’t on the Footsie anymore? The stock that was booted from the FTSE 100 in 2024 and now resides in the FTSE 250? That Ocado?
It seems ChatGPT might have done an oopsie there. A useful reminder, I think, of the inexplicable mistakes these artificial ‘intelligences’ are capable of making very confidently.
Nonetheless, I gently reminded my AI friend of its error and pushed for a real FTSE 100 stock to think about.
Its second response offered a range of options: “There are some interesting candidates right now — including WPP, Diageo, Reckitt, Airtel Africa and possibly Babcock depending on what ‘worst’ means.”
As pleased as I was to see ChatGPT answer the question appropriately this time, I couldn’t ignore a pattern in the stocks suggested. The companies proposed have all been struggling of late.
While it’s normal to see falling share prices and want to steer clear, it’s true that buying at a low is sometimes the best time to invest in a company. I wonder if the famous Buffett quote, “Be greedy when others are fearful and fearful when others are greedy,” was left out of the AI’s training data perchance?
With that in mind, I was curious about advertising and communications giant WPP – a stock many are fearful about at present…
Cheap bargain?
The WPP (LSE: WPP) share price is down 80% from its all-time high. The market value of the firm has shrunk to £4bn. This places the company in danger of losing FTSE 100 status (the threshold to be moved to the FTSE 250 currently stands at around £3.6bn.
Time to get greedy? Could this be a bargain?
The concern here is that WPP’s operations – like advertising, communications, public relations – are in great danger from artificial intelligence (AI). The thinking goes that these types of services are some of the things that AI can replace.
It’s already hitting the top and bottom lines. Revenue fell 8% in the last financial year, and the company posted a loss for the first time in years. Forecasts for the upcoming years look grim too.
That said, after such a large fall, the valuation looks reasonable. The forecast earnings give a forward dividend yield of around seven. You won’t find much cheaper than that anywhere. For anyone who thinks the AI hype is overblown, this could be a stock to consider.
Should you invest £5,000 in WPP right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if WPP made the list?
John Fieldsend owns shares in Diageo and Ocado.
This story originally appeared on Motley Fool
