SAP shares fell to their lowest since August 2024, pressured by AI-driven investor concerns, wiping $130B off market value amid global software selloff

Frankfurt Shares in Germany’s SAP SE extended a months-long downtrend on Wednesday falling to their lowest level since August 2024 and erasing roughly $130 billion from the company’s market value compared with last year’s peak.

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The stock declined 2.4% by 1334 GMT to €233 billion ($273 billion), down from a record high of €344 billion in February 2025.

Analysts attribute the selloff to investor apprehension over the impact of artificial intelligence on SAP’s services business, particularly the potential erosion of billable hours and module pricing.

“Some of the concerns in the market are justified, not about the company’s existential future, but about the value of its services,” said Angelo Meda, portfolio manager at Banor SIM.

He added that SAP must accelerate its transition to cloud-based offerings.

SAP’s cloud revenue forecasts have already shown signs of pressure.

In October 2025, the company projected full-year cloud revenue at the lower end of its guidance, though operating profit was expected near the upper end.

The firm is scheduled to release its latest earnings next week.

Investor sentiment across software stocks has weakened sharply.

Jefferies analyst Brent Thill said software sentiment “has rarely been lower,” with SAP’s valuation approaching historical trough levels.

Frankfurt traders noted that many clients are positioning ahead of the upcoming results, while technical indicators suggest potential further downside.

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The broader sector trend mirrors pressure in the United States, where the S&P 500 software index has fallen 7.2% in 2026, reflecting heightened uncertainty over AI-driven disruption and the evolving software market landscape.