The resurrection of the software on the Stock Exchange leaves investors bewildered
Is there still room to run for SAP and the rest of the sector after the summer rally?
The software sector has experienced a sudden recovery in the stock market since July 24, driven by better-than-expected financial results from companies such as SAP, Sage, and Salesforce. SAP's shares have risen 44% since announcing its earnings, and the European and US software sector has gained over 20% during this period. Despite this rebound, analysts from Jefferies and Bank of America note that the sector still has not fully recovered its losses and that its valuation is 36% below its historical average.
Bank of America advises investors to be cautious, as the impact of artificial intelligence on the sector is yet to come, particularly for weaker companies.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
