AI Spending Raises Questions over Sap's 'saaspocalypse' Recovery

Dow Jones

Jul 24

Europe's largest software company has a lot of digging to do to get out of its "SaaSpocalypse" hole.

Shares in SAP, which runs the Concur expense-management platform, are up 6% after it reported better-than-expected results late Thursday. It was the latest in a string of reassuring updates from software businesses whose stocks were punished in a freakout over AI disruption to software-as-a-service providers.

The anxiety may be fading, but SAP stock is still down some 35% in 2026. For some, that looks like a buying opportunity. Bank of America analysts have a EUR208 price target for SAP-more than 50% higher than where it's trading today. They like the company's backlog of cloud sales.

But buying into the recovery story requires investors to look past SAP's own AI-related spending, which dragged on profits. "SAP is really at the start of the journey in identifying the right mix of human involvement and AI help," said Ben Barringer, head of technology research at U.K. investment manager Quilter Cheviot.

At the request of the copyright holder, you need to log in to view this content

LOGIN / SIGN UP

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

1
2
3
4
5
6
7
8
9
10

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers HK | Online Trading in stocks, bonds & ETFS","description":"Discover Tiger Brokers HK, an online trading platform for stocks&ETFs, options&futures, bonds and crypto. Open an account to enjoy low commission trading today!","keywords":"tiger trading,tiger security,tiger broker hk,tigers co ltd,tiger trade hk,tiger brokers hk,stock broker,securities broker,online brokerage,hong kong broker,hk broker,online stock trading,online trading platform,stock trading platforms,trading application,stock trading,stock trading hong kong,buying stocks in hong kong,tiger brokers","social":{"ogDescription":"Discover Tiger Brokers HK, an online trading platform for stocks&ETFs, options&futures, bonds and crypto. Open an account to enjoy low commission trading today!","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.0a0bd8dc.png","ogUrl":"https://www.gotigerhk.com/news/2653308141"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"HKG","license":"TBHK","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"2653308141\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/2653308141?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-07-24 19:41","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2653308141","market":"other","top_or_hot":-1,"title":"AI Spending Raises Questions over Sap's 'saaspocalypse' Recovery","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     Europe's largest software company has a lot of digging to do to get out of its \"SaaSpocalypse\" hole. \n</p>\n<p>\n     Shares in <a href=\"https://laohu8.com/S/SAP\">SAP</a>, which runs the Concur expense-management platform, are up 6% after it reported better-than-expected results late Thursday. It was the latest in a string of reassuring updates from software businesses whose stocks were punished in a freakout over AI disruption to software-as-a-service providers. \n</p>\n<p>\n     The anxiety may be fading, but SAP stock is still down some 35% in 2026. For some, that looks like a buying opportunity. Bank of America analysts have a EUR208 price target for SAP-more than 50% higher than where it's trading today. They like the company's backlog of cloud sales. \n</p>\n<p>\n     But buying into the recovery story requires investors to look past SAP's own AI-related spending, which dragged on profits. \"SAP is really at the start of the journey in identifying the right mix of human involvement and AI help,\" said Ben Barringer, head of technology research at U.<a href=\"https://laohu8.com/S/TKKD.SI\">K</a>. investment manager Quilter Cheviot. \n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AI Spending Raises Questions over Sap's 'saaspocalypse' Recovery</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAI Spending Raises Questions over Sap's 'saaspocalypse' Recovery\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2026-07-24 19:41</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     Europe's largest software company has a lot of digging to do to get out of its \"SaaSpocalypse\" hole. \n</p>\n<p>\n     Shares in <a href=\"https://laohu8.com/S/SAP\">SAP</a>, which runs the Concur expense-management platform, are up 6% after it reported better-than-expected results late Thursday. It was the latest in a string of reassuring updates from software businesses whose stocks were punished in a freakout over AI disruption to software-as-a-service providers. \n</p>\n<p>\n     The anxiety may be fading, but SAP stock is still down some 35% in 2026. For some, that looks like a buying opportunity. Bank of America analysts have a EUR208 price target for SAP-more than 50% higher than where it's trading today. They like the company's backlog of cloud sales. \n</p>\n<p>\n     But buying into the recovery story requires investors to look past SAP's own AI-related spending, which dragged on profits. \"SAP is really at the start of the journey in identifying the right mix of human involvement and AI help,\" said Ben Barringer, head of technology research at U.<a href=\"https://laohu8.com/S/TKKD.SI\">K</a>. investment manager Quilter Cheviot. \n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4023","symbol_name":"应用软件","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2653308141","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2653308141","pubTimestamp":1784893260,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"Europe's largest software company has a lot of digging to do to get out of its \"SaaSpocalypse\" hole.Shares in SAP, which runs the Concur expense-management platform, are up 6% after it reported better-than-expected results late Thursday. It was the latest in a string of reassuring updates from software businesses whose stocks were punished in a freakout over AI disruption to software-as-a-service providers.The anxiety may be fading, but SAP stock is still down some 35% in 2026. For some, that looks like a buying opportunity. Bank of America analysts have a EUR208 price target for SAP-more than 50% higher than where it's trading today. They like the company's backlog of cloud sales.But buying into the recovery story requires investors to look past SAP's own AI-related spending, which dragged on profits. \"SAP is really at the start of the journey in identifying the right mix of human involvement and AI help,\" said Ben Barringer, head of technology research at U.K. investment manager Quil","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4023":"应用软件","VTHR":"Vanguard Russell 3000 ETF","CHAT":"ROUNDHILL GENERATIVE AI & TECHNOLOGY ETF","ARTY":"ISHARES FUTURE AI & TECH ETF","QTOC":"Innovator Growth Accelerated Plus ETF - October","SAP":"SAP SE","BK4613":"AI应用软件","AGIX":"通用人工智能 ETF-AGIX","VGT":"信息技术ETF-Vanguard","BK4588":"碎股","AIPO":"Defiance AI and Power Infrastructure ETF","BK4528":"SaaS概念","BK4585":"ETF&股票定投概念"},"translate_title":"人工智能支出引发对 Sap “saaspocalypse”复苏的质疑","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AGIX":1.5,"AIPO":1.5,"VTHR":1.5,"QTOC":1.5,"ARTY":1.5,"CHAT":1.5,"SAP":0.9,"VGT":0.61},"content_text":"Europe's largest software company has a lot of digging to do to get out of its \"SaaSpocalypse\" hole. \n\n\n     Shares in SAP, which runs the Concur expense-management platform, are up 6% after it reported better-than-expected results late Thursday. It was the latest in a string of reassuring updates from software businesses whose stocks were punished in a freakout over AI disruption to software-as-a-service providers. \n\n\n     The anxiety may be fading, but SAP stock is still down some 35% in 2026. For some, that looks like a buying opportunity. Bank of America analysts have a EUR208 price target for SAP-more than 50% higher than where it's trading today. They like the company's backlog of cloud sales. \n\n\n     But buying into the recovery story requires investors to look past SAP's own AI-related spending, which dragged on profits. \"SAP is really at the start of the journey in identifying the right mix of human involvement and AI help,\" said Ben Barringer, head of technology research at U.K. investment manager Quilter Cheviot.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":true,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":true,"need_login_tip":false,"code":"91000000","status":"200"}}}