{
  "id": 245239,
  "title": "Stock of the Week: SAP stock is a hot speculation, but no gamble",
  "url": "https://urgent.news/2026/08/07/aktie-der-woche-sap-aktie-ist-eine-hei-e-spekulation-aber-keine",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-07T02:00:00.000Z",
  "source": {
    "name": "Handelsblatt",
    "slug": "handelsblatt",
    "url": "https://www.handelsblatt.com/finanzen/anlagestrategie/kolumnen/geldanlage-sap-aktie-ist-eine-heisse-spekulation-aber-keine-zockerei/100245203.html"
  },
  "original_language": "de",
  "account": "The SAP share rose by six percent in the past week, and over a one-month period, it is the best-performing stock in the Dax with a 21 percent gain. Since the low at the end of June, the gain has added up to just over 30 percent. Previously, the stock had fallen by 55 percent from the record high in February of last year. To make up for this, the share would have to rise by 122 percent. The company's balance sheet provides no reason for such large price fluctuations; SAP delivers good figures quarter after quarter. Between April and June, important cloud sales rose by 22 percent. The even more important key figure of short-term cloud revenues increased by as much as 27 percent. SAP is thus succeeding excellently in concluding new cloud contracts. With expected sales of around eight billion euros, SAP is likely to exceed the previous record net profit from the previous financial year by one billion euros. This initially dispels concerns that artificial intelligence (AI) could endanger the business model and lead to companies being able to handle their accounting and financial management with AI agents instead of expensive SAP software. With gross margins of over 70 percent, SAP is highly profitable. Almost 60 percent of sales come from the cloud business and thus potentially recurring revenues. The company has a healthy balance sheet, no debt, and can easily finance investments from its core business.\n\nThe situation that the company's profit is reaching records, but the share price is still almost 70 percent away from its old record high even after its recent increase, makes the long-term highly rated stock appear cheaper again. Currently, it is valued at a price-earnings ratio of 21.7, which is eight percent lower than the average of the past ten years. SAP: Many characteristics of a moat stock This is not a buying argument, as it is not valuations that decide whether a stock rises, but supply and demand; however, such calculations provide a classification. Most expert analysts consider SAP to be a good investment. 27 out of a total of 31 national and international banks recommend buying. A common justification is the complex business model. SAP is deeply embedded in the core processes of many companies. A change would be expensive for customers, risky, and would raise liability and control questions. Furthermore, many AI applications prove to be more expensive in the long term than initially thought. From the perspective of many analysts, SAP thus fulfills typical characteristics of a moat stock. This term, coined by Warren Buffett - probably the most well-known investment legend worldwide - refers to resilient business models, strong brands with high customer loyalty, and sustainable competitive advantages. Competitors find it difficult to dispute market shares from such companies. However, such moat stocks are not entirely free from price fluctuations.\n\nWarren Buffett's great teacher was the economist Benjamin Graham. His book \"Intelligent Investor,\" published shortly after World War II, is still a standard work for many private investors and professional investors today. Graham's first basic rule is: to swim against the tide, not to let oneself be driven crazy by the market. Anyone who trades in stocks knows how difficult it is to implement this seemingly banal wisdom. This often also involves doing nothing for a long time, no matter how strongly the prices fluctuate. Betting on stocks like SAP is undoubtedly a (hot) speculation, but not a wild gamble.",
  "summary": "Only 55 percent down and now again 30 percent up. To understand this, Warren Buffett and his great teacher help.",
  "key_points": [
    "SAP stock rises 6% weekly, best DAX performer monthly",
    "21% increase since June, 30% gain after 55% drop in 2022",
    "Cloud revenues up 22%, short-term earnings 27%"
  ],
  "editors_take": "SAP's resilient business model, strong brand, and sustainable competitive advantages make its stock a speculative but not reckless investment opportunity, despite its high valuation and potential for market fluctuations.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}