Analysis of SAP share price

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If you are thinking of trading in the German stock market, some little-known stocks like SAP stock may be worth your attention. Quickly find out how to analyze this stock thanks to some information that you absolutely must know, its live price or a complete analysis of its recent history.  

Latest news

SAP shares fell 20% on Monday on the stock market

27/10/2020 - 12h50

The SAP Group share experienced a spectacular fall on Monday on the stock market with a loss of 20%, its biggest daily decline since its listing on the stock market in 1995. Explanations.

Elements that can influence the price of this asset:

Analysis N°1

The SAP Group should rapidly implement a strategy aimed at strongly and consistently developing its activities while the market is still consolidating.The results of these strategies should then be followed with great attention.

Analysis N°2

Another point, the financial situation of this company is now more solid which could enable it to strengthen its presence in emerging markets through targeted and strategic investments in certain specific countries.

Analysis N°3

We are also aware that SAP has recently heavily invested in research and development.It is clear that each new product launched by this company could assist in gaining new market shares for this group.

Analysis N°4

Finally, we would also like to see the SAP Group widen its product portfolio through the acquisition of companies in various sectors.

Analysis N°5

Firstly, it would be advantageous to closely monitor the major competitor of the SAP Group, the American company Oracle, which holds tightly onto its market share.

Analysis N°6

The increasing development of ‘Open Source’ technologies could also represent a threat for the SAP Group.

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General presentation of the SAP Company:

SAP, which stands for ‘Système Anwendungen Produkte’, is currently the number one company worldwide in the sector of integrated software sales.More precisely, the SAP Company sells integrated software such as management software as well as maintenance software, advice and training.

SAP achieves the majority of its turnover in Germany and Middle Eastern Europe but also operates its activities in other countries worldwide with over 76,986 employees.


Know the competition to SAP shares:

The SAP Company is one of the international leaders in the creation and distribution of software and integrated software.Through the development of this sector which is experiencing high demand as well as an innovative strategy that is solid and successful SAP currently holds fourth position in the global classification of software producers and suppliers.

The SAP Company lags behind major competitors such as Microsoft, Oracle and IBM which occupy the first three places in this classification.It is then followed by companies such as Symantec, EMC, VMware, HP, SalesForce, Intuit, Adobe and Cisco.

The Oracle Group is however the greatest threat to this company at present as the activities of this group are close to those of SAP.This company also has to face the dangers inherent in Cloud and Open Source which brings it closer to competitors such as Google which could be a serious threat over the long term.

It is therefore advised that you stay informed of news and events in this sector before launching into trading in the SAP company shares and particularly taking into account information on the direct and indirect competitors as well.


Strategic alliances implemented by the SAP Group:

The SAP Group has based its development strategy on the implementation of specific partnerships with competitors or companies in related sectors.Here are a few examples:


Introduction and quotation of the SAP shares:

The SAP share price is currently quoted on the Deutsche Boerse stock market and is also included in the calculation of the German stock market index, the DAX 30.


Stock market data

Through this article you have been able to learn certain interesting information about SAP shares including details of the activities exercised by this company and its activity sector and the historical movements in its share price over the last few years. However, to go even further and enable you to completely master this asset we offer you the opportunity now to learn other more general information which is nonetheless important relating to the SAP Company and its shares.

Of course, the information that you have learned is susceptible to change over time and should therefore be verified through your broker online or directly from the company’s website before you take position.


The advantages and strengths of SAP stock as a stock market asset :

First of all, one of the main strengths of this technology company is its innovations. Most of the products offered by the group are highly innovative and therefore very attractive to the general public and meet new consumer needs.

On the other hand, the SAP Group is strongly oriented towards new innovations and is constantly seeking to develop new products and technological solutions. To this end, it invests heavily in research and development in order to stay one step ahead of its competitors and to offer effective and useful products.

The SAP group's positioning in its sector of activity is of course another undeniable strong point. The group is one of the leaders in its field and thus earns the trust of consumers and customers. This positioning has been acquired by the group largely thanks to the very high quality of its products which have made its reputation over the years.

Recently, the SAP group has also been able to seduce professionals by integrating the new version of Business Objects into its solutions on the market. As a result, professionals can now purchase SAP software and deploy it completely independently.

Finally, organizations using the SAP Business One model can help the group directly target larger companies with a minimum of 100 employees.


Disadvantages and Weaknesses of SAP as a Stock Exchange Asset :

As we have just seen, the German SAP group has the qualities necessary for its future development and this could lead you to take a bullish position on its share today. But before embarking on this strategy, you should also take the time to analyze the few flaws in this stock and the weaknesses of the group that could hinder this growth.

First of all, the SAP group is strongly threatened by very strong competition from some of its competitors. It should be noted for example that the ERP developed by SAP is currently the one and only product of the group that can be compared to the products developed by the American giant Oracle which is one of the leaders in this market.

Although the SAP group's results have improved slightly over the last few years, it has still not managed to make real progress in a truly convincing manner and therefore does not sufficiently reassure its investors and shareholders.

The SAP group must still make efforts to diversify its activities and thus protect itself against the risks of exposure to one and the same sector of activity. Indeed, its activities are very targeted and its product range is still not very varied, which could be detrimental to it in the more or less long term.

Frequently Asked Questions

In which markets does the SAP Group operate?

The SAP group is currently present in three major geographical areas, namely Europe, Middle East and Africa, the Americas with the headquarters of SAP America, which includes North America and Latin America at Newton Square in Pennsylvania, and finally Asia Pacific and Japan or APJ, which includes Japan, Australia, India and several other Asian countries. The SAP group also has a network of more than 115 different subsidiaries and research and development firms.

What are the figures you need to know about SAP?

Among the interesting facts and figures to know about SAP is that the company has approximately 388,000 customers worldwide. It operates 140,000 installations in 130 different countries and employs 91,000 people, including 15,000 consultants and trainers and 7,700 service and maintenance technicians. The group also has 77 training centres, 7 support centres and 9 application and content development centres.

What is the assessed risk for the SAP action?

According to estimates and analyses of this value, the risk on holding SAP shares is 36.99% over 10 years. However, this risk falls to 26.20% over three years and rises to 39.96% over 6 months. It is also noted that the highest risk is that over 3 months at 44.72%.

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76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.