SAP shares tumbled nearly 15%, hitting a 17-month low as investor concerns over slowing software license revenues and broader tech sector weakness triggered a sharp selloff. The decline wiped out billions in market value, underscoring volatility in global technology stocks as investors rotate toward value-oriented sectors.
SAP, Europe’s largest software company, faced a steep decline in its stock price as a wave of selling swept through global technology shares. The drop reflects both company-specific challenges and broader market sentiment, with investors reassessing growth prospects amid sector-wide corrections.
Key Highlights:
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Stock Decline: SAP shares fell nearly 15%, marking their sharpest drop in recent quarters.
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Market Value Impact: The selloff erased close to $130 billion in market capitalization.
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Revenue Concerns: Software license revenues fell 15%, while services revenue also dipped, missing analyst expectations.
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Cloud Growth: Cloud and software revenues rose 11% to $9.4 billion, but growth was below forecasts.
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Investor Sentiment: Broader tech sector weakness, part of the “Magnificent Seven” selloff, added pressure.
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Management Outlook: CFO Dominik Asam expressed cautious optimism, citing a strong pipeline for the second half of the year.
SAP’s sharp decline highlights the fragility of investor confidence in tech giants amid shifting market dynamics. While cloud growth remains a bright spot, the company must reassure investors with stronger execution and clearer visibility on long-term profitability.
Sources: Reuters, SDxCentral, Bloomberg, Economic Times