German software firm SAP (GER 30:SAP) has risen to be Europe’s most valuable in 2024.
SAP – Weekly Chart
SAP shares have mounted a very strong rally in 2023 and 2024 to hit 258.75. Bulls still have the momentum in this stock.
CEO Christian Klein told CNBC that SAP had the “richest business data set of all tech companies” which was allowing it to add multiple new AI services.
SAP took the throne as Europe’s most valuable company from Novo Nordisk, the Danish pharma company riding a wave of weight loss drugs, Ozempic and Wegovy. Those drugs have struggled recently with competition and pipeline. Fears over a slowdown in luxury goods have also hurt the price of luxury goods producer LVMH.
SAP had a market cap of around $342.4 billion by Monday’s close, up more than 40% over the last year.
Bank of America analysts this month said SAP was its top large-cap software pick for 2025, expecting “further upside to street expectations on upsell, including from AI.” The analysts also said business cloud migration was in an “early stage” and would continue in recent years.
The company embarked on a major restructuring last year, focusing the business on AI opportunities, and reported cloud revenue gaining 25% year-on-year in 2024. CEO Christian Klein previously told CNBC it was the “best year in SAP’s history” with the company’s cloud backlog now at 63.3 billion euros ($68.5 billion) in 2024.
“We are sitting on a very rich set of business data, HR data, finance data, supply chain data, sales data” from 40,000 customers, Klein said in January, noting the “richest business data set of all tech companies”.
German stocks have been rallying in the last two weeks after the government relaxed its debt spending rules to allow for more defense spending in its coming budgets.
