• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Here’s why SAP share price may crash to €208 soon

by June 20, 2025
by June 20, 2025

SAP share price has crashed in the past few weeks, erasing some of the gains it made after its first-quarter results. It plunged to a low of €247 on Thursday, its lowest level since April 28. It has dropped by over 9.35% from its highest point in May. 

SAP business is doing well as demand rises

SAP is a top technology company that provides software to thousands of clients globally. It is the biggest player in the enterprise resource planning industry, and it competes with firms like Oracle, Microsoft, Infor, and Epicor. 

The company has also increased its service offerings to include solutions like business applications in areas like human capital management and supply chain management. 

SAP is also a top provider of cloud computing services that its US peers like Amazon and Microsoft dominate. It is also involved in areas like data management and analytics. 

SAP is widely used by companies in all industries, with some of its top clients being Delta Air Lines, Cintas, Shiseido, Siemens, Apple, and Walmart.

The most recent financial results showed that SAP business is firing on all cylinders as demand for its ERP, cloud, and artificial intelligence solutions jump. 

Its cloud computing backlog jumped by 28% to €18.2 billion, while its cloud revenue soared by 27%. Its cloud revenue is growing faster than its bigger competitors like Microsoft and Amazon, which experienced 20% and 17% growth rates. 

SAP’s quarterly revenue jumped by 11% to €9 billion, beating the average revenue estimate of €8.8 billion. Its cloud revenue rose by 27% to almost €5 billion, while its cloud ERP Suite’s revenue jumped by 34% to €4.2 billion. 

Business growth to continue

SAP’s management believes that the company’s business will continue doing well this year. For one, there are signs that its business is tariff or recession-resistant because it offers essential services and 86% of its revenue comes from recurring services.

SAP’s cloud revenue will be between €21.6 and €21.9 billion this year, while its cloud and software revenue will be between €33.1 billion and €33.6 billion. 

Most importantly, the company’s free cash flow will almost double from last year’s €4.2 billion to €8 billion. This growth will accelerate after the company’s restructuring efforts that cost it about €3 billion euros. 

SAP has always been conservative when issuing its guidance, meaning that it will likely do better than estimates. 

These numbers will help it to continue its share repurchases and dividends. There is a likelihood that the company will announce a new share repurchase program this year. 

It announced a €5 billion program in 2023, which is expected to end in the second half of the year. The company may announce a similar program for the coming years as its free cash flow rising. 

SAP share price analysis

SAP stock chart | Source: TradingView

The daily chart shows that the SAP stock price peaked at €273 in May, mirroring the performance of most companies. It has now pulled back by almost 10% and moved to a low of €247, its lowest point since April 29.

The stock has moved below the 50-day moving average. Worse, there are signs that it has formed a double-top pattern around the €273 resistance level and a neckline at €208. 

Therefore, the stock will likely continue falling, with the immediate target being at €232, its lowest level on March 14. A drop below that level will invalidate the inverse head and shoulders pattern, and point to more downside, potentially to €208, the lowest swing in April. A move above the double-top at €273 will invalidate the bearish view.

The post Here’s why SAP share price may crash to €208 soon appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Pop Mart shares fall on China’s blind-box alert, but analysts see global growth ahead
next post
China’s rare earth magnet exports tumble amid new restrictions and classification chaos

Related Posts

Banijay to acquire majority stake in Tipico creating...

October 28, 2025

Cathie Wood warns investors to brace for correction,...

October 28, 2025

European markets open mixed on Tuesday: FTSE opens...

October 28, 2025

Entry and Midnight Foundation launch integration to unite...

October 28, 2025

Elon Musk challenges Wikipedia with Grokipedia, his AI-driven...

October 28, 2025

Novartis shares fall as profit lags estimates; downside...

October 28, 2025

Nio stock price forecast: is it safe to...

October 28, 2025

IBEX 35 Index has soared: top Spanish stocks...

October 27, 2025

Australia commits A$83.5 million to boost cyber resilience...

October 27, 2025

Honda joins India’s clean energy drive with OMC...

October 27, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Understanding Medicaid

    October 28, 2025
  • Colonel Harwood’s Legacy: The Engineer Who Built an Economic Institution

    October 28, 2025
  • Digi International Announces Digi XBee 3 Global LTE Cat 4 Cellular Modem for IoT Applications

    October 28, 2025
  • Trumponomics Is Pushing Young Voters Into Socialism

    October 28, 2025
  • Banijay to acquire majority stake in Tipico creating a European gaming powerhouse

    October 28, 2025
  • Cathie Wood warns investors to brace for correction, backs this unlikely winner

    October 28, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 5

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 6

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 7

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025

Categories

  • Economy (3,033)
  • Editor's Pick (297)
  • Investing (185)
  • Stock (2,064)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

What’s going on with the stalling Boohoo...

March 24, 2025

Tesla stock recovers 5% on Tuesday: here’s...

March 12, 2025

HSBC appoints ex-NatWest executive David Lindberg to...

October 21, 2025