SAP shares hit 17-month low as AI-driven selloff burns $130 billion

Company Overview - Shares in SAP have fallen to their lowest level since August 2024, with a market value loss of approximately $130 billion since last year's peak [1] - The current valuation of SAP is about 233 billion euros ($273 billion), down from a lifetime high of 344 billion euros in February 2025 [2] Market Sentiment - The decline in SAP's stock is part of a broader selloff affecting software stocks in Europe and the U.S., driven by concerns over AI disruption [1] - Analysts remain generally optimistic about SAP, despite the negative sentiment in the software sector, which is described as being at a historical low [4] Financial Performance - SAP has forecasted full-year cloud revenue at the lower end of its outlook range, while operating profit is expected to be at the upper end [4] - The S&P 500 software index has experienced a 7.2% decline so far in 2026, indicating a challenging environment for software companies [5] Strategic Considerations - Concerns have been raised regarding the potential decrease in the average selling price of SAP's services due to AI making modules easier to develop and replicate [3] - It is crucial for SAP to accelerate its transition to cloud services to address market concerns about the value of its offerings [2]