Categories: Market Overview

One of Europe’s most valuable tech firms just saw $30 billion wiped off its market cap

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.

JPMorgan cut its price target for SAP to 120 from 160 euros, and downgraded the stock to “neutral” from “overweight.”

SAP just saw $30 billion wiped off its market cap and it’s on track for its worst trading day in 12 years, CNBC, Oct 26

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

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