Good morning fellow investors, today i want to take a look at the german SAP. XETR:SAP
In the past i never published an analysis on german DAX30 stocks, for the future i want to take a look at the most famous german companies. SAP is one of the german "big-tech" stocks and had the most astonishing performance in the last years. Just a few days ago SAP had it's yearly earnings report in which they forecasted miserable years to come. This costed them -20% of market value at the german stockmarket open.
In my opinion SAP is extremely cheap and it would be a shame if this opportunity gets passed aside. Last friday i decided to make a longterm investment in SAP and bought a considerable amount of shares.
Keep in mind that this is a buy and hold position - unleveraged and without a stop-loss.
Current setup:
Entry: 97.23$ Profit target: 150$ and more ! Stop-Loss: None - Buy and hold
The issue is 1. that sap shifted to cloud base and the growth of this field is less than on premise, 2. 2nd lock down is expected to affect the stock as next earnings on 28 jan 2021, 3. The fundamental logic behind a big jump is the unexpected good news and i am not sure if this would happen soon. What do u think?
Mendenmein-Capital
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@m_hamzeh1, It may be no secret that SAP will struggle in the future because of the decisions the management made, however it's still germany's biggest tech company.
On premise may have been a field with more growth in the past but the future leans towards cloud technology.
The consequences of the lockdown on SAP are massively overestimated and even if they should harm the company the german government will surely jump in for help.
I understand your concerns and can agree with them partly but i think the german government would rather die than letting SAP fail. - aka too big to fail