Tech News

SAP simply wiped $ 30 billion off its market cap and is nicely on its method to its worst buying and selling day in 12 years

sap-simply-wiped-30-billion-off-its-market-cap-and-is-nicely-on-its-method-to-its-worst-buying-and-selling-day-in-12-years

A company logo is attached to the headquarters of the SAP software group.

Uwe Anspach | Image Alliance | Getty Images

LONDON – German enterprise software group SAP saw its market valuation fall by € 25 billion on Monday as shares plummeted over 17% after disappointing third quarter results.

The company, which slashed its 2020 sales forecast, saw its market cap decline from € 125 billion to € 100 billion and is on track for its worst trading day in 12 years.

SAP said coronavirus lockdowns would affect demand for business relationships and customer management software well into 2021, when it was announced that all-in-cloud computing was planned.

The company is giving up medium-term profitability targets, warning that it will take longer than expected to recover from the pandemic.

"As the CEO of SAP, I have to focus on the long-term value creation of this company," said SAP CEO Christian Klein on Monday to CNBC's "Squawk Box Europe".

"Therefore, I cannot trade the success of our customers and the significant sales potential of SAP for short-term margin optimization."

JPMorgan lowered its target price for SAP from 160 euros to 120 euros and downgraded the stock from "overweight" to "neutral".

0 Comments
Share

Katherine Clark