|Bid||57.05 x 1300|
|Ask||57.59 x 1400|
|Day's Range||56.53 - 58.48|
|52 Week Range||39.71 - 62.60|
|Beta (5Y Monthly)||0.78|
|PE Ratio (TTM)||18.08|
|Earnings Date||Dec 10, 2020 - Dec 14, 2020|
|Forward Dividend & Yield||0.96 (1.60%)|
|Ex-Dividend Date||Oct 07, 2020|
|1y Target Est||63.13|
Walmart CEO Doug McMillon says wants to play role in e-commerce and fulfillmentand front end of TikTok if there is a deal
(Bloomberg) -- 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.SAP’s collapse caused the wider tech market to drop, with Europe’s Stoxx Technology index falling 7.6%, its biggest one-day loss since March. Shares of cloud-applications giant Salesforce.com Inc. fell 4.1% at 2:28 p.m. in New York. Oracle Corp. -- SAP’s main rival -- dropped 3.9%.“SAP is a bellwether stock for European technology and global software,” said Citigroup Global Markets analyst Amit Harchandani. “They have an insight into Fortune 500 companies and when SAP tells you they see headwinds, there will be some truth to the fact that some of the customers are challenged and don’t have the money to spend.”For some investors, SAP’s results have called into question the wider assumption that software companies will prosper during the pandemic, due to millions of employees working from home. Many of these companies, which deliver applications or services over the internet, have so far resisted the worst effects of a pandemic-fueled recession, and some have thrived while businesses operate remotely.Some major SAP clients may be reconsidering signing large contracts to update their software, as the pandemic continues to limit any global economic recovery. SAP has a wide range of products, many of which rely on winning and renewing major new deals for databases, as well as accounting, expenses or human resources software. Unsurprisingly, SAP said business travel had been particularly hard hit over the past quarter.Still, SAP has fared worse during the pandemic than many of its software peers. The company said in April that the virus had hindered new business, prompting worries that software vendors around the world might underperform. A few companies later weakened their forecasts, but most reported healthy growth. More recently, San Francisco-based Salesforce said in August that revenue climbed 29% to $5.15 billion in the previous quarter, and raised its revenue projection for the year.SAP’s poor results and weak outlook may suggest that a recovery for vendors of on-premise software -- based on a company’s own network rather than on the internet -- could take longer than anticipated, as clients continue to delay major IT upgrades, analysts at Citi wrote in a note Monday.Oracle, based in Redwood City, California, may be more affected than cloud-based providers since it offers database and financial-planning tools like SAP, and has a large base of customers who buy software for their own server farms. Last month, Oracle reported a return to sales growth in the previous quarter after years of largely stagnant revenue expansion, due to rising demand for its cloud-based products and falling interest in everything else. Oracle projected its sales would grow 1% to 3% in the current period.“The bigger surprise to us was the sharp deceleration in [SAP’s] cloud backlog numbers,” said Anurag Rana, analyst at Bloomberg Intelligence. “Given that Workday and Salesforce.com had good quarters with healthy pipelines, it seems that could be losing share to pure-play cloud vendors, which would make it hard for them to attain any meaningful recovery in the near-term.”Investors now have an anxious wait before the major U.S. cloud software providers such as Salesforce, Workday Inc. and Oracle announce earnings in December.(Corrects spelling of analyst in 10th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Jack Ma’s Ant Group Co. is planning to stop taking investor orders for the Hong Kong leg of its initial public offering a day earlier than scheduled as the record stock sale has already been heavily subscribed, according to people familiar with the matter.Demand has been so great the Hangzhou-based firm is set to close the institutional investor order book on Wednesday, said the people, requesting not to be identified because the matter is private. The company was initially planning to close the Hong Kong book at 5 p.m. Thursday for each region globally, according to terms of the deal obtained by Bloomberg News. The potential move would bring the closing in line with the Shanghai leg.A representative for Ant declined to comment.Ant is seeking to raise about $34.5 billion through IPOs in Shanghai and Hong Kong, a blockbuster listing that will be the biggest IPO ever and make it one of the most valuable finance firms on the planet. The operator of the Alipay platform will have a market value of about $315 billion based on filings Monday, bigger than JPMorgan Chase & Co. and more than the gross domestic product of Finland. The sale vaults Ma’s fortune to $71.6 billion, topping the Walmart Inc. heirs.This is “a homecoming for capital markets in Shanghai and Hong Kong,” said John Ho, founder of Janchor Partners. Ho, who invested $400 million in Ant two years ago, said he’s trying to get more Hong Kong shares, adding that being able to invest in Ant “is priceless.”The IPO is attracting interest from some of the world’s biggest money managers, and sparking a frenzy among individual investors in China clamoring for a piece of the sale. In the preliminary price consultation of its Shanghai IPO, institutional investors subscribed for over 76 billion shares, more than 284 times the initial offline offering tranche, according to Ant’s Shanghai offering announcement.T. Rowe Price Group Inc., UBS Asset Management and FMR LLC, the parent of Fidelity Investments, are among the money managers angling for a piece of the deal, a person familiar with the matter has said. Hong Kong stockbrokers are so confident the IPO will go smoothly that they’re offering to let mom-and-pop investors buy the stock with as much as 20 times leverage.The strong demand puts the much-anticipated IPO on track to surpass Saudi Aramco’s $29 billion sale last year. Ant priced its Shanghai stock at 68.8 yuan ($10.27) apiece and its Hong Kong shares at HK$80 ($10.32) each. The company may raise another $5.17 billion if it exercises the option to sell additional shares to meet demand, known as the greenshoe.Ant will trade under the ticker symbol 688688 in Shanghai and 6688 in Hong Kong, in keeping with Ma’s fondness for the number eight, which is often associated with wealth in China. Ma’s Alibaba Group Holding Ltd., which owns about a third of Ant, trades under the ticker 9988 in Hong Kong.The fintech giant is charging ahead with its landmark offering just days ahead of the U.S. election. The Hong Kong trading debut will be on Nov. 5., only two days after the U.S. vote, an event that could spark market volatility if the vote is disputed or counting delayed.Ma, the former English teacher who co-founded Alibaba with $60,000, is poised to become the world’s 11th-richest person after the Ant IPO.Ma’s 8.8% stake is worth $27.4 billion based on the stock pricing in Hong Kong and Shanghai. That will lift the 56-year-old’s fortune to $71.6 billion on the Bloomberg Billionaires Index, exceeding that of Oracle Corp.’s Larry Ellison, L’Oreal SA heiress Francoise Bettencourt Meyers and individual members of the Waltons, whose family own Walmart.The IPO promises a lucrative pay-day for some of the world’s biggest investment banks. Ant picked China International Capital Corp. and CSC Financial Co. to lead its Shanghai leg of the IPO. CICC, Citigroup Inc., JPMorgan. and Morgan Stanley are heading the Hong Kong offering. Existing Ant shareholders won’t be able to sell shares for six months, according to the filings.(Updates with details on the pricing from sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.