DAX: Strong SAP share pushes forward

Last Updated: 24. Januar 2024By

SAP kicks off the reporting season in Germany by presenting fresh numbers this morning, solidifying its position as a heavyweight in the DAX. The SAP share has climbed by over 6 percent today (as of January 24, 2024, 11am) and has once again reached a new all-time high of around 161 euros. Since the beginning of the year, the stock has already gained more than 15 percent.

The strong performance of SAP’s stock has also boosted the DAX. The leading index is currently up about 1 percent, trading around 16,800 points. In the past few days, the DAX was unable to benefit from the AI boom on Wall Street. However, thanks to tech giant SAP, the AI wave has now reached Germany – although the topic of interest rates is likely to come back into focus soon.

SAP impresses and puts AI in the spotlight Thanks to a strong fourth quarter, SAP has successfully concluded the business year 2023. Adjusted for currency effects, operating profit has climbed by 13 percent to 8.72 billion euros – surpassing the company’s own targets. Cloud revenues were up 23 percent compared to the previous year.

In 2024, the boom topic of artificial intelligence (AI) will be even more in focus at SAP. Although the company is currently not planning any job cuts, around 8,000 positions will be restructured through the increased use of AI. The costs for the restructuring measures are estimated at around 2 billion euros.

DAX benefits from SAP’s stock In the past few days, it was mainly Wall Street that caused a stir. The Dow Jones, S&P 500, and Nasdaq have reached new all-time highs. Now, the US indices are taking a breather, while the DAX can gain ground again thanks to the tailwind from SAP. With around 16,800 points, the leading index is trading in the area of its 2024 high.

With the DAX giant SAP, the reporting season has also started in Germany – in the coming weeks, strong business figures could provide further impetus to the index. However, the focus will also shift back to interest rate cuts. To some extent, these are probably already priced into the DAX, which is why investors should always be prepared for setbacks.

SAP share, source: https://aktienscreener.com/