SAP just saw $30 billion wiped off its market cap and it’s on track for its worst trading day in 12 years
A company logo is attached to the headquarters of the SAP software group.
Uwe Anspach | picture alliance | Getty Images
LONDON — German enterprise software group SAP saw its market valuation fall by 25 billion euros ($30 billion) on Monday as shares collapsed by over 17% following disappointing third-quarter results.
The company, which slashed its revenue forecast for 2020, saw its market cap fall from 125 billion euros to 100 billion euros and it is on track for its worst trading day in 12 years.
SAP said coronavirus lockdowns would affect demand for its business relations and customer management software well into 2021 as it announced that it plans to go all-in on cloud computing.
The firm is abandoning medium-term profitability targets and it warned that it will take longer than expected to recover from the pandemic.
“As the CEO of SAP, I have to be focused on the long-term value creation of this company,” SAP Chief Executive Christian Klein told CNBC’s “Squawk Box Europe” on Monday.
“So I cannot trade the success of our customers and the significant revenue potential of SAP against short-term margin optimization.”
JPMorgan cut its price target for SAP to 120 from 160 euros, and downgraded the stock to “neutral” from “overweight.”
