Today I notice a big drop in share price...
Any hint on the cause ?
10 replies (most recent on top)
I'd say the failure that is RISE coupled with the now very obvious AI bubble and the veil slipping off the C suite level id--ts eyes (of all public companies) and being exposed how ignorant and blinded they were by AI salesman and hype. I dare anyone to dispute this.
@en I know tens of people (including myself) waiting for severance to move before it gets uglier... hopefully this year...
I hope this means I get laid off this year. I was hoping to get a severance package before I get fired or blow up and quit.
Maybe there's one thing related to the sudden drop in share price. The CEO of Success Factors stepped down and SAP's cloud talent is moving to other companies.
@OP Chuck took half a day off.
The markets panicked.
@a9 typo, I mean YOU don't work at SAP...
@a9 bunch of non-sense, pretty sure I don't work at SAP...if executed well, the strategy apps/data/AI will lead to golden years 🥰
The SAP share price is too high because this company is overvalued anyway. It should be around 180 for the value it generates but it is way over 200.
It’s a return to the mean. Stock price made an unusually big move up before giving up the gains.
All tech shares saw a drop today. But SAP's is a small drop in the bucket. Wait for the 29th when the quarterly financial results are out and you'll see how much faith investors actually have at SAP.
Investors are realizing two important things: (i) that SAP is abandoning its core revenue generating businesses for stupid AI features that do not work and no one wants to pay for, and (ii) that SAP has no real strategy to grow the company revenue. They're only focused on saving some operating costs using layoffs and by cutting down on employee salary budgets and benefits. But there is no real plan to make the company more profitable. There are better companies to invest in and that's where shareholders are focusing their wealth.
Also there has been a talk between SAP executives to restart share buybacks. Maybe that's why some of the millionaire executives are dumping their shares.