SAP Sends Warning for Software Earnings With Forecast
- German software company cut revenue forecast for full year
- Covid lockdowns will hurt demand through first half of 2021
SAP’s results have threatened the assumption that tech companies should prosper, due to millions of employees working from home.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Dire earnings results at SAP SE wiped out more than 35 billion euros ($41 billion) from the German software company’s market value in a matter of minutes, sending a warning to tech investors about the health of the business software industry.
In a surprise release late Sunday, SAP, one of Europe’s largest tech companies, cut its revenue forecast for the full year and said it expected the fresh wave of Covid-19 lockdowns to hurt demand through the first half of 2021. The results caused shares to fall the most ever in a single day, according to data compiled by Bloomberg since 1989.