Published by Global Banking & Finance Review®
Posted on January 21, 2026
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleSAP shares hit a 17-month low amid AI-driven selloff, losing $130 billion in market value. Analysts remain optimistic about SAP's future prospects.
By Danilo Masoni
MILAN, Jan 21 (Reuters) - Shares in Germany's SAP extended a months-long downtrend on Wednesday, falling to their lowest since August 2024 and bringing the loss in market value since last year's record high to around $130 billion.
The decline is part of a broader selloff that has hit software stocks in Europe and on Wall Street on the back of growing fears of AI disruption, even though most analysts remain upbeat on Europe's largest software group.
By 1334 GMT, the stock was down 2.4% in Frankfurt, valuing SAP at about 233 billion euros ($273 billion), compared with 344 billion euros at its lifetime high in February 2025. "Some of the concerns in the market are justified, not about the company's existential future, but about the value of its services," said Banor SIM portfolio manager Angelo Meda, adding that it was crucial for SAP to accelerate its cloud transition.
"With AI, many modules can become easier to develop and replicate, so the risk is that the average selling price of services and billable hours falls," he added.
SAP in October forecast full-year cloud revenue at the lower end of its outlook range, though operating profit was expected toward the upper end. The company reports results next week. "Software sentiment has rarely been lower," Jefferies analyst Brent Thill wrote in a note on Monday, adding that SAP's valuation was now approaching its historical trough.
One Frankfurt‑based trader said some clients were taking long positions ahead of next week's results, but added that charts were still flashing fresh "sell signals". The S&P 500 software index has lost 7.2% so far in 2026.
($1 = 0.8522 euros)
(Reporting by Danilo Masoni; Editing by Amanda Cooper)
Market capitalisation is the total market value of a company's outstanding shares of stock, calculated by multiplying the share price by the total number of shares.
AI disruption refers to the significant changes in industries and markets caused by the adoption of artificial intelligence technologies, which can lead to new business models and operational efficiencies.
Cloud revenue refers to the income generated from services delivered via cloud computing, including software, storage, and infrastructure services.
A selloff is a rapid selling of securities, often leading to a decline in market prices, typically triggered by negative news or economic factors.
Explore more articles in the Finance category
