SAP Plunges the Most Since 1994 Amid Shift to Cloud Focus

SAP SE  (SAP) – Get Report shares plunged the most in more than 25 years Monday after Europe’s biggest tech company scrapped its near-term profit targets as it accelerates its shift towards cloud computing.

SAP revealed its third quarter earnings Sunday, which showed revenues falling 4% to €6.54 billion ($7.67 billion) and operating profits slumping 12% to €1.47 billion, but cut its full-year forecasts and said the company’s transition to cloud-focused growth, and a decline in software licensing revenues, will trigger notable changes to the group’s medium-term outlook first published by former CEO Bill McDermott. 

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