SAP: Positive News Flow Sends Stock to All-Time High
The stock of the Walldorf software forge SAP was recently able to mark a new all-time high, as you may have noticed. The German stock exchange is raising the limit for the DAX index in the coming spring from 10% to 15%, which plays into the company’s hands. This means that SAP will have more room for its weighting. This measure also means that fund managers who mirror the DAX must buy or buy back SAP shares in order to represent the company proportionally correctly again. Good prospects, then, for the stock, as this should create additional demand on the market for the titles. The positive development of SAP recently brought the DAX company to nearly โฌ149, a new all-time high. This surge is mainly due to the news from the German Stock Exchange. But other arguments also speak against giving up SAP shares. On the one hand, the successful transformation into the cloud. In the third quarter, cloud revenues increased by 23%, much stronger than forecast. To accelerate growth in this area, SAP recently acquired the software management company LeanIX, which provides services that complement the existing portfolio very well and make it easier for SAP customers to switch to the cloud. Furthermore, SAP is now playing a decisive role in the field of artificial intelligence. The high investments have paid off and the company has already introduced an AI assistant that optimizes processes and saves costs for customers. SAP will close the current stock market year as one of the top performers on the DAX and the prospects for the coming year remain good. Don’t let go of any shares. For non-invested investors, it makes sense to wait for pullbacks in the DAX title.