SAP (ticker symbol: SAPG) is a German multinational software company and the world’s leading enterprise resource planning (ERP) software vendor. Its name stands for Systems Applications and Products in Data Processing. SAP is the most valuable company in Germany, according to a study by the accounting firm PwC.
Founded in Weinheim, Germany in 1972, the company is now based in in Walldorf, Baden-Württemberg. The largest non-American software company by revenue, SAP constitutes the world’s third-largest publicly traded software company and the second largest German company by market capitalization.
SAP’s revenues are mainly derived from its sales of database software, technology, and cloud engineering systems, as well as other ERP software products, including:
- human capital management (HCM) software
- customer relationship management (CRM) software
- enterprise performance management (EPM) software
- product lifecycle management (PLM) software
- supplier relationship management (SRM) software
- supply chain management (SCM) software
- business technology platform (BTP) software
- custom SAP programming environments
SAP operates through three main segments:
- SAP Applications, Technology & Services segment, engaging in the sale of software licenses and subscriptions
- The SAP Business Network segment, which includes its cloud-based collaborative business networks and services relating to the SAP Business Network
- The SAP Customer Experience segment, which comprises of on-premise and cloud-based products
SAP AG went public on November 4, 1988 after its shares were listed on the Frankfurt and Stuttgart stock exchanges. In 1995, SAP was included in the German stock index DAX and, on September 22, 2003, SAP was included in the STOXX Europe 50. SAP issues a 2% average quarterly dividend for its long-term stock holders.
Since 2012, SAP has and acquired several cloud-based companies and products, with its most notable acquisitions including:
- In December 2011, SAP acquired human capital management company SuccessFactors for $3.4 billion and in October 2012, SAP bought supplier network provider Ariba
- In 2013, SAP acquired e-commerce company hybris for $1.5 billion
- In 2014, SAP acquired travel management company Concur Technologies for $8.3 billion as well as behavioral marketing company SeeWhy for $1.1 billion
- In 2016, SAP acquired Concur Technologies, a provider of cloud-based travel and expense management software, for $8.3 billion
- In 2018, SAP acquired data collection company Qualtrics for $8billion as well as robotic automation company Contextor
SAP Stock History
SAP was founded in 1972 by five former IBM employees (Dietmar Hopp, Hasso Plattner, Hans-Werner Hector, Klaus Tschira, and Claus Wellenreuther) with a vision of creating application software for real-time business processing.
By 1975, SAP had built applications for financial accounting (RF), invoice verification, and inventory management (RM). In 1980, SAP ́s roughly 80 employees moved into their first own office building in Walldorf, Germany. In 1999, SAP responded to the Internet and new economy by launching its mysap.com strategy and by 2011, the first customers started using the in-memory database SAP HANA.
In 2014, IBM and SAP began a partnership to sell cloud-based services, while in 2015, SAP partnered with HPE to provide secure hybrid cloud-based services. SAP has also forged an ongoing partnership with fellow tech-giant Microsoft in order to produce tools for data visualization.
In 2016, the company announced its plans in to invest heavily into technology relating to Internet of things (IoT) spending €2 billion in investments in relevant sectors by the end of 2020. In 2017, SAP became a founding member of the EU Cloud Code of Conduct.
SAP currently maintains more than 240 million cloud-based users, more than 100 solutions covering all business functions, and the largest cloud portfolio of any provider. The company now operates 65 data centers at 35 locations in 16 countries.
How to Trade SAP
Over the last half century, SAP has become one of the largest business software companies in the world and as such has enjoyed great popularity amid traders and investors. Here are some factors to consider when trading stocks with leverage:
While SAP is a global leader in software technology, there are still a number of contenders to keep an eye on when considering the company’s performance. SAP’s top competitors include the likes of Microsoft, Oracle, IBM, Tableau, SAS, MicroStrategy, Qlik, and TIBCO Software.
Mergers & Acquisitions
SAP has made a total of 51 major company acquisitions (as of 2022) and forged a number of key strategic partnerships with the likes of Microsoft and IBM. These investments have enabled SAP to expand its services across multiple tech sectors. SAP traders should look out for new such milestones and acquisitions as they can have a major impact on the company’s stock price.
New Product/Services Rollouts
Beyond just developing software, SAP has launched breakthrough technologies that are setting new standards in IT and business, such as its pioneering ERP software and its in-memory computing platform SAP HANA.
SAP earnings reports include key metrics such as net income, earnings per share, earnings from continuing operations, and net sales, enabling investors to gauge the financial health of the company. SAP releases earnings reports at the end of every quarter, with its fiscal year running from December 1st to November 30th of the following year.
AvaTrade SAP Stock Trading Information
- SAP Symbol: # SAPG
- Trading Times: Monday – Friday 08:00-16:29 GMT
- Country: Germany
- Currency: EUR
- Exchange: Frankfurt Stock Exchange
- Leverage up to: 5:1
Why trade SAP Stocks with AvaTrade
- International Regulation – AvaTrade is a multi-regulated broker that adheres to strict guidelines of international regulatory bodies.
- Leveraged Trading – AvaTrade’s flexible leverage gives traders the opportunity to trade SAP with relatively lower capital requirements.
- Ability to Short Sell – AvaTrade clients can benefit from the flexibility of placing both long and short positions without having to own SAP.
- Automated Trading Solutions – AvaTrade supports automated trading strategies and offers advanced orders, enabling traders to take advantage of potential opportunities that meet their pre-defined trading system criteria.
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