SAP - SAP SE
| Previous Close | 119.47 |
| Open | 119.24 |
| Bid | 117.65 x 1400 |
| Ask | 125.00 x 800 |
| Day's Range | 117.32 - 120.18 |
| 52 Week Range | 94.81 - 140.62 |
| Volume | 379,415 |
| Avg. Volume | 833,437 |
| Market Cap | 144.015B |
| Beta (3Y Monthly) | 0.81 |
| PE Ratio (TTM) | 28.39 |
| EPS (TTM) | 4.14 |
| Earnings Date | N/A |
| Forward Dividend & Yield | 1.67 (1.40%) |
| Ex-Dividend Date | 2019-05-16 |
| 1y Target Est | 141.28 |
- Bloomberg
Salesforce.com Sees Surge in Bullish Bets With Earnings on Deck
(Bloomberg) -- Salesforce.com options are showing a decidedly bullish tilt ahead of its second-quarter earnings report, signaling that investors are betting the business software maker’s results will be better received than those of European counterpart SAP SE last month.There are more than twice as many calls than puts among contracts set to expire Friday in the wake of this afternoon’s release, and options prices imply a 6% earnings-day price move. That’s almost double the 3.1% average of the past eight reports, when rallies outpaced declines five-to-three. The stock has gained 8% this year, compared with a 31% rally in the the S&P 500 Software Index.It’s probably going to be a “noisy” earnings report, given Salesforce.com’s recent acquisition of Tableau Software Inc., according to SunTrust Robison Humphrey analyst Terry Tillman. He said the acquisition closed about two months sooner than targeted and he would expect stability and modest upside for the second-quarter with more catalysts ahead.San Franciso-based Salesforce.com has low exposure to China and is unlikely to reiterate the same concerns around the U.S.- China trade dispute that SAP has, Bloomberg Intelligence analysts Anurag Rana and Gili Naftalovich said in an Aug. 14 research note. Margins are likely to expand as sales growth exceeds the rate of investment in new products and geographies, but the acquisition of Salesforce.org and currency headwinds may weigh on the rate of expansion, they said.SAP, which traded at a record high on July 3, has since fallen 14%, with the decline accelerating after it reported a second-quarter slowdown in new cloud bookings and disappointing margins. Analysts also underscored weak growth in software license revenue, hit by uncertainty in Asia.About 17% of total open interest in Salesforce.com is set to expire on Friday, and implied volatility is elevated at 117% versus a three-month average of 30%.To contact the reporter on this story: Gregory Calderone in New York at gcalderone7@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Richard Richtmyer, Brendan WalshFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- InvestorPlace
There’s No Need to Pull the Trigger on CRM Stock Before Earnings
During the past 15 years, Salesforce.com (NYSE:CRM) has been one of the best performers in the tech world. Keep in mind that the average annual return on CRM stock was an impressive 31%.Source: Shutterstock But lately things have not been so stellar. For example, the year-to-date return is 5%. This has lagged other mature tech companies like Microsoft (NASDAQ:MSFT), Adobe (NADAQ:ADBE) and even IBM (NYSE:IBM).OK then, might Salesforce stock be an opportunity for investors now? Is this the right entry point? Well, perhaps so. In fact, we'll get more details on Thursday on how things are tracking as the company will report its fiscal second-quarter results.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHere's a look at the Wall Street expectations: * For revenues, the consensus forecast is for $3.95 billion, up 20.4% from the same period a year ago. Keep in mind that CRM's own forecast is for a range of $3.94 billion to $3.95 billion. * Wall Street is looking for earnings to hit 47 cents a share. This compares to 39 cents a share a year ago.As for the prior quarter, CRM posted revenues of $3.74 billion, up 24% on a year-over-year basis. There was also a nice 34% jump in operating cash flows to $1.97 billion. * 10 Undervalued Stocks With Breakout Potential What's more, the company announced full-year guidance on revenues of $16.10 billion to $16.25 billion, for a growth rate of 21% to 22%. An Eventual QuarterThe biggest event for CRM stock during the quarter was the $15 billion acquisition of Tableau, a top player in the analytics space. The deal is actually the largest in the company's history.Founded in 2003, Tableau focused on a new approach to analytics, with an attempt to disrupt the dominant legacy companies in the industry like IBM, SAP (NYSE:SAP) and Oracle (NYSE:ORCL). At the heart of the platform was a focus on interactive data visualization that seamlessly integrated with a myriad of databases and spreadsheets.As for CRM, Tableau will become a key part of the Customer 360 analytics system. The deal will also provide a nice boost to the top-line (last year the revenues came to $1.16 billion).But of course, there were other notable highlights for the quarter. Here's a look at some: * Salesforce shelled out $1.35 billion to acquire ClickSoftware Technologies, which is a provider of field service and workplace systems. The company will become part of the Service Cloud. * A report from Forrester (NASDAQ:FORR) quantified the total economic impact and benefits of Salesforce Lightning for the Service Cloud. The result: there was a 475% return on investment over a three year period for a typical customer. * Gartner (NYSE:IT) reported that Salesforce was positioned as a leader in its 2019 Magic Quadrant for Multiexperience Development Platforms. Bottom Line for the CRM Stock PriceSalesforce.com has a knack for beating its numbers. And this upcoming report should be no different. If anything, the Tableau deal should be a help (at least for the guidance).But the dealmaking will also be critical for the long-term of CRM stock. The focus on data companies is spot-on since this allows for the leveraging of next-generation technologies, especially AI (Artificial Intelligence).In the meantime, Salesforce remains dominant in its core areas like CRM, service/support and marketing.Then again, when it comes to CRM stock, it may not be realistic to expect the kinds of standout returns of prior years. The company is much more mature nowadays and it is getting tougher to gin up organic growth.Regardless though, CRM still looks like a good choice for a core holding for investors that want exposure to enterprise categories like the cloud and AI.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post There's No Need to Pull the Trigger on CRM Stock Before Earnings appeared first on InvestorPlace.
- TechCrunch
The five great reasons to attend TechCrunch’s Enterprise show Sept. 5 in SF
The vast enterprise tech category is Silicon Valley’s richest, and today it’spoised to change faster than ever before
- Bloomberg
AI Startup Plans IPO at Value of Over $1 Billion -- in China
(Bloomberg) -- The promise of artificial intelligence has yet to translate into big business. Now Kai-Fu Lee, a prominent venture capitalist in China and founder of Sinovation Ventures, says his firm’s new startup should be able to reach $100 million in revenue next year and go public the year after.AInnovation, established in March 2018, develops artificial intelligence products for companies in industries such as retail, manufacturing, and finance. Its customers include Mars Inc., Carlsberg A/S, Nestle SA, Foxconn Technology Group, China Everbright Bank Co. and Postal Savings Bank of China Co.Chief Executive Officer Hocking Xu, a veteran of International Business Machines Corp. and SAP SE, has hired staff that work with traditional companies to figure out how to take advantage of AI in their operations. AInnovation is on track to hit $100 million in revenue within two years of its founding, the fastest pace yet for such a startup, Lee said.“We took the approach of ‘Let’s take some of the best business people and let’s target the industries which need AI the most’,” he said.Lee figures AInnovation will be able to go public in less than two years at a valuation of $1 billion to $2 billion. The firm has raised about $70 million so far from Sinovation, CICC ALPHA and Chengwei Capital. Since the company was funded with yuan, it would most likely list domestically, either on China’s new NASDAQ-like Star market, or on the country’s ChiNext.For retail companies, AInnovation sells products including a smart vending machine that opens with facial recognition and software that monitors retail shelves with image recognition. It’s created computer vision technology that detects defects on the production line for manufacturers and underwriting software and natural language processing technology for financial firms. There’s a large market in particular for technology to catch flaws early in the manufacturing process, said Jeffrey Ding, a researcher with Oxford’s Center for the Governance of AI. That effort “aligns with the Chinese government’s priorities to upgrade smart manufacturing capabilities to compete with countries like Germany and Switzerland,” he said in an email.The former president of Google China, Kai-Fu Lee founded Sinovation Ventures in 2009. It manages more than $2 billion across seven funds in U.S. and Chinese currencies. It holds shares in more than 300 companies, most of which are in China. Its investments include autonomous driving company Momenta, consumer AI chip firm Horizon Robotics Inc. and bitcoin mining and AI chip company Bitmain Technologies Ltd.In artificial intelligence, “we’re still at a very early stage in the commercialization,” Lee said. “We’re still at the equivalent of early internet portals, back when everybody was using Yahoo and there wasn’t even a Google, Amazon, or Facebook.”Global economic ructions, however, may present short-term challenges. Venture deals in China have been plummeting as investors pull back amid escalating trade tensions and slowing economic growth. The value of investments in the country tumbled 77% to $9.4 billion in the second quarter from a year earlier.“In an economy that’s slowing down, everything slows, including venture capital. There will definitely be a shakeout,” Lee said. “The positive side is that if the economy is challenging, and valuations are down, it’s a good time for us to go shopping.”Sinovation was one of the first Chinese venture capital firms with a presence in the U.S. With the trade war and the Trump administration’s tighter scrutiny of foreign investments, the firm has scaled back investments and no longer has an office in the U.S., Lee said, adding that investments in America have always been a small fraction of its overall investments.“In the long term, it’s a pity if we have to cause a total separation of two countries because one could argue that AI got to where it got because the whole world has been able to work together.”(Updates with analyst’s comment in the 9th paragraph)To contact the reporter on this story: Selina Wang in China at swang533@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Peter Elstrom, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- American City Business Journals
Google Cloud continues market share battle via changes in sales team's pay
New, bonus-driven compensation plan took hold on July 1, not unlike how SAP and Oracle pay their salespeople.
- Business Wire
Leading Companies Around the Globe Continue to Choose SAP® Ariba® and SAP Fieldglass® Solutions for Intelligent Spend Management
SAP SE (SAP) today announced Burger King Brazil and Guatemala’s Banco G&T Continental are among the latest companies to select SAP® Ariba® and SAP Fieldglass® solutions to help digitally transform procurement and integrate the entire buying process across their organizations. Leading organizations including German energy company Uniper SE and U.S. educational product and services provider Follett Corporation continue to choose SAP Ariba and SAP Fieldglass solutions for intelligent spend management. Banco G&T Continental, one of the largest banks in Guatemala and Central America, selected SAP Ariba solutions to help simplify its procurement processes, establish better governance and improve its relationship with suppliers.
- InvestorPlace
Take Your Time With IBM Stock as it Digests its Behemoth Linux Maker Deal
IBM (NYSE:IBM) shares have tumbled this month. Since its investor presentation on August 2, IBM stock has fallen from $146.58 a share to $134.12. Reducing its 2019 earnings guidance, IBM anticipates that the recent Red Hat acquisition will not contribute to earnings until 2021.Source: Shutterstock The adjustments to earnings are due to non-cash write-downs of deferred revenue. As InvestorPlace contributor Mark Hake wrote last week, IBM has suspended its stock buyback program in order to pay for the Linux maker.But with the Red Hat adding much needed growth, what's the verdict with International Business Machines stock? Is there upside for long term investors? Or is there additional downside to the IBM stock price? Let's have a closer look at why IBM stock may be a buy at today's price.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Red Hat Adds Growth PotentialPrior to the Red Heat deal, IBM was treading water. The company released earnings on July 17. For the second quarter of 2019, revenue was down year-over-year. Sales were $19.1 billion, down from $20 billion in the prior year's quarter. The company's Cloud and Business Services unit saw slight growth (5% and 3% YoY, respectively), but declines in the Global Technology Services and Systems units countered this improvement. Despite this slight revenue slip, IBM managed to keep quarterly operating income steady at ~$2.8 billion. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What The Red Hat deal adds a variety of growth catalysts to the International Business Machines story. For one thing, the acquisition makes IBM a bigger player in the $1 trillion cloud computing space. The deal is expected to accelerate revenue growth and improve gross margins. The deal is also very synergistic. IBM can now sell Red Hat's suite of solutions to their existing customer base. With IBM's global reach, the company could expand Red Hat's business better than Red Hat would have done as an independent company.But is this deal a guaranteed slam-dunk? In the past, IBM's M&A activity has been focused on small bolt-on deals. At $34 billion, this acquisition is quite a large bite. The company could experience headwinds integrating Red Hat into its operations. Failing to meet investor expectations, the IBM stock price could see additional downside if the deal's benefits take longer to realize.With this in mind, is the risk worth the potential return? Are investors paying a premium or getting a bargain? IBM Stock ValuationWith its weak growth over the past few years, IBM stock sells at a fairly low valuation. Shares currently trade at a forward price/earnings (forward P/E) ratio of 11.8x. The company's trailing 12-month (TTM) enterprise value/EBITDA (EV/EBITDA) is 8.9x. Compare this to Microsoft (NASDAQ:MSFT), which trades for 26.3 times forward earnings, and an EV/EBITDA ratio of 18.4x. Oracle (NYSE:ORCL) trades for 17 times forward earnings, and an EV/EBITDA ratio of 12.4x. SAP (NYSE:SAP) trades for 40.8 times earnings, and has an EV/EBITDA ratio of 18.5x.Comparing IBM to similar large information technology companies, it appears shares trade at a discount. With the aforementioned weak growth in mind, such a valuation is justified. But with the Red Heat deal adding growth potential, there could be substantial upside to the IBM stock price. If the company can pull it off, shares should see material appreciation in the next few years.But is now the time to buy IBM stock? Or will investors have an opportunity to buy on subsequent dips?There are many ways IBM stock could go lower. Enterprise IT is not like making widgets. The constantly evolving landscape makes it tough for established companies like IBM to stay relevant. The elimination of stock buybacks reduces the company's ability to shore up earnings per share. * 7 Stocks Under $7 to Invest in Now What if IBM decides to cut its dividend to reduce debt? The company has not cut the dividend since its early-90s turnaround. However, even with its high debt load, the company's $12 billion in free cash flow is more than enough to support the current $6.48 per share payout. The dividend cut is a low-risk scenario, but still possible given the company's need to reduce debt. Bottom Line: Patience is Advised With IBM StockInternational Business Machines stock is clearly undervalued. The investment community has written off Big Blue, continuing to believe the company remains a dinosaur. With the Red Hat acquisition, IBM can prove the bears wrong, and deliver acceptable revenue growth going forward. But with IBM's history of making stumbles, it is tough to take their investor presentations without a grain of salt. With this in mind, there could be additional downside to the IBM stock price.In the event of additional bad news, IBM stock may be a screaming buy. If the Red Hat deal faces short-term headwinds, shares could trade at fire sale prices. Until then, keep an eye on IBM stock, but don't bet the ranch.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Real Estate Investments to Ride Out the Current Storm * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk * 7 Safe Dividend Stocks for Investors to Buy Right Now The post Take Your Time With IBM Stock as it Digests its Behemoth Linux Maker Deal appeared first on InvestorPlace.
- Simply Wall St.
Looking At SAP SE (FRA:SAP) From All Angles
Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on SAP...
- Bloomberg
Watch Out Google, YouTubers Are Unionizing
(Bloomberg Opinion) -- Why exactly is a German metalworkers union teaming up with YouTubers to take on Google?The answer has as much to do with concerns over how to organize labor in the era of digital disintermediation as it does with teenagers uploading clips of themselves playing Minecraft.IG Metall, whose 2.3 million members make it Europe’s largest trade union, joined forces last month with an unlikely ally: the German YouTuber Joerg Sprave, whose Slingshot Channel boasts 2.2 million subscribers and who produces viral videos of himself firing off, among other things, Ikea pencils. Two years ago, he set up a Facebook group called The YouTubers Union, which now has 21,000 members, after his videos started getting “de-monetized” -- so-called because, with no ad revenue, the uploader doesn’t make any money. They complain that Google’s YouTube refuses to explain why it stops running advertisements alongside some videos. YouTube CEO Susan Wojcicki wrote in a blogpost the move was in response to complaints by brands that their ads were being shown alongside “inappropriate” content. But creators aren’t explicitly told what rules they breached when a clip becomes ineligible for ads.Some saw their income fall by 80% after a 2017 change to the rules. Even the prominent YouTuber Casey Neistat, who now has 11 million subscribers, found an apparently uncontroversial Indonesian travelogue was de-monetized. Others have puzzled over the rationale. British YouTuber Jack Massey Welsh, who posts his wacky antics on the channel JackSucksAtLife, revealed last year that clips of himself drinking milk and of someone swearing while playing Minecraft were de-monetized. He said YouTube never explained why.Regardless of whose side you’re on, the entry of a heavyweight labor union into this battle should be seen as a healthy test of its ability to rebalance the power dynamic between Google and the millions of people whose income derives from uploading videos to the site. The fight reflects how digital platforms have reconstructed the seemingly straightforward relationship between employer and employee.IG Metall wants YouTube to be more transparent with its community of creators. The German union is inviting YouTubers to become members and is running a campaign called FairTube to press for better terms. The initiative is in its early days and IG Metall won’t disclose how many YouTubers it’s signed up. Even so, it’s given Google a deadline of August 23 to come to the negotiating table. If it refuses, IG Metall plans to use its deep pockets and army of lawyers to pursue legal options.It’s a remarkable precedent. While labor unions have already represented others who aren’t salaried employees of tech firms – ridehailing drivers and other gig economy participants, for instance – IG Metall is trying to organize a disparate group which provides a less tangible service.Meet Monopsony, Creature of a Puzzling Labor MarketIt’s a far more challenging battle than for, say, factory workers. Online platforms by their very nature tend to pit diverse groups of people, sometimes thousands of miles apart, against each other to offer the best service at the lowest possible price. Collective bargaining, in this context, doesn’t really work.A strike in the traditional sense would achieve little. Even in the extreme unlikelihood that every YouTuber in Germany boycotts the platform and stops uploading videos, it would have a limited impact on the site’s profitability. While a localized strike by Uber drivers can cripple the ridehailing service for its duration, YouTube has unparalleled cross-border scale – 450 hours of video are uploaded every minute – and an almost bottomless library of existing content.So what exactly can IG Metall do? A lawsuit is the most likely next step. The union claims that decisions made to de-monetize a video with no explanation contravene the European Union’s General Data Protection Regulation. One strand of the rules, introduced last year, gives people the right to know whether their personal data is being processed, for what purpose, and to request a copy of it all. The union argues that algorithms deciding to stop ads being attached to a clip generate such data. It’s a smart play. With the deep pockets afforded by its huge membership, IG Metall is able to contest issues where an individual would struggle.Notably, the union is trying to use the same tool of its members’ atomization – the online platform – to organize them. Even before it joined forces with the YouTubers Union Facebook group, IG Metall had launched an initiative called FairCrowd, a website where gig economy workers provide feedback on the apps they work for. It’s not that far from its home turf: IG Metall already represents employees at tech companies like SAP SE.Unions are ultimately fearful that disruption from digital platforms could unravel much of the progress they’ve made in improving labor conditions over the past 150 years. The employee-employer contract is, at its core, fairly basic: the employee receives a steady income and other insurance and agrees to subordinate him- or herself to the employer (within reason) in return. Trade unions have helped establish the limits of what is reasonable.Conversely, an independent contractor enjoys greater freedom and isn’t subordinated to a single employer, but can’t bank on getting a guaranteed salary. Digital platforms often now impose strictures which can give them an employer-like power over people who are dependent on them for their livelihood, but without the associated benefits such as a steady income. Meanwhile unions, whose membership numbers are slowly declining, are trying to establish their role in that relationship. IG Metall’s FairTube is an early sally.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: Stephanie Baker at stebaker@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Bloomberg
He Sold His Firm for $8 Billion, Then Teed Off at Pebble Beach
(Bloomberg) -- It’s been a good year for Qualtrics International Inc.’s Ryan Smith. In January, he completed the sale of his company to SAP SE for $8 billion, then three weeks later teamed up with pro golfer Josh Teater to finish third at the AT&T Pebble Beach Pro-Am.For his efforts, the three-handicapper picked up the Jack Lemmon Award as the amateur who most helped their pro in the tournament. While his social set now includes top golfers like Tony Finau, who posted this photo from Smith’s Pebble Beach home ahead of June’s U.S. Open, Smith still dedicates the bulk of his time to ventures off the course.He and older brother Jared continue to oversee the day-to-day operations of the Provo, Utah-based software company they founded in their parent’s basement. He’s also branching out into real estate, while backing a crowdfunding charity that supports cancer research. Ryan, 41, recently spoke with Bloomberg about his investing priorities, as well as philanthropic efforts spurred by events close to home. Comments have been edited and condensed.Which sports are you most passionate about?I play basketball almost every morning I’m in town, and I am an avid golfer. I don’t play golf as often as I would like, but I love everything about the game: respect, integrity and the challenge that you can never beat it entirely. I also love that golf is a way to unplug without your phone or technology. Some of the greatest relationship and bonds I have in this life have been created on the golf course.Is there a sports team you’d love to own?I love the NBA. Qualtrics sponsors the jersey patch of the Utah Jazz and donates it to our cancer charity, 5 For The Fight, which invites everyone to give $5 to the fight against cancer. It’s crowdfunding for cancer research. It’s been incredible to work with the players, the Jazz organization and the NBA as a whole. As far as team ownership, I have a hard time not seeing myself more involved with teams in the future.What’s your approach to investing?One of our principles at Qualtrics is being “All In.” So until recently, I have been very focused on only investing in Qualtrics and putting 100% of my energy and time into that. While I’m still all in on Qualtrics, I am also looking at where and how to invest going forward. My current thoughts are threefold. One, I know tech. I’m good at tech. Tech will be a big part of all my investing. Two, I want to back the funds that backed us. Three, real estate. As for what I look for, it’s 100% founders. It’s absolutely simple. I want to back people who know how to win and who use sheer force of will to carry their ideas forward.Tell me more about real estate investing.I have always been passionate about real estate. It’s how I was able to survive while bootstrapping Qualtrics. I stayed afloat in college because I owned the apartment I lived in and rented out the other rooms. I got free rent and didn’t require much of a paycheck from Qualtrics to live on. We’ve now opened more than 20 Qualtrics offices around the world, including designing a new headquarters in Utah. I love that process. Real estate is something I understand and always want to be involved in. Plus, good real estate projects can have a really positive impact on local communities and that’s important to me. Are projects in particular?I recently founded 50 East Capital with an investment manager who relocated from New York City to Provo. We’re pursuing commercial real estate investing in two areas. The first is opportunity zones, focusing primarily on multifamily and student housing. The second is more opportunistic, with a strategy to purchase existing, positive cash-flow commercial real estate properties in primary and secondary markets. How did you celebrate the sale of Qualtrics?I don’t know that I’ve really celebrated the sale. I think “sale” is often referred to as a finish line. It’s not. I view the acquisition a lot like the various funding rounds we had at Qualtrics. People would always congratulate us as if the goal was to get funding. The goal isn’t to get funding, it’s to build a great company. I have always said that congratulating someone on getting funding was like congratulating someone on getting a mortgage. It shouldn’t be “congratulations,” it should be “good luck.” That said, I just bought a truck -- a black Ford Raptor. My kids are pretty excited about hauling stuff and put things in the back. So maybe that’s how I celebrated.What about philanthropy?When we started Qualtrics, my dad was fighting cancer. Because of some incredible research being done, he survived. We decided that if our then-little tech project ever became anything, cancer research could be the cause we supported. There are so many amazing causes out there, but we have always believed that if we focus on one area, we can have the biggest impact. For years, we donated to great cancer research hospitals like the Huntsman Cancer Institute. A few years ago, I co-founded 5 for the Fight. At Qualtrics, we know the power of researchers and the impact they can have.To contact the reporter on this story: Gillian Tan in New York at gtan129@bloomberg.netTo contact the editors responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net, Steven Crabill, Pierre PauldenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Business Wire
Nobel Laureate Muhammad Yunus to Headline SAP® Ariba® Live in Singapore with How to Use the Power of Spend to Change the World
SAP SE (SAP) today announced Nobel Laureate Professor Muhammad Yunus, known as the “father of social business and microcredit,” will deliver an inspiring closing keynote session at the SAP® Ariba® Live event in Singapore. The premier global procurement and supply chain conference, where companies come to connect to get business done and spend better, is set to take place August 20–22 at the Raffles City Convention Centre in Singapore. Professor Yunus will close SAP Ariba Live in Singapore with his moving story of how he embraced the term “spend better” by using the power of investment to help change the world.
- Bloomberg
Elliott Is Playing Hardball Again in Germany
(Bloomberg Opinion) -- Elliott Management Corp. is resuming confrontational activism in Germany, potentially reviving fears that “locust” funds are back and up to no good. Investors are probably being too skeptical that Elliott will be able to force positive change.The activist hedge fund has lambasted managers at Scout24 AG, a Frankfurt-listed online real estate and car classifieds business capitalized at 5.4 billion euros ($6 billion). They are a soft target. The company’s board backed a cheap bid from Scout24’s former private-equity owners in February, only to see shareholders resoundingly reject the offer in May. The debacle has exposed the group to the broader attack that bad management is the reason for the share price weakness which triggered the attempted takeover.Elliott has had some Teutonic success through behind-the-scenes activism with SAP SE and Bayer AG. Here, it’s publicly calling for a break-up and much more aggressive leverage, accusing management of a “shocking lack of ambition” that has left the shares trading at a near 25% discount to an estimated fair value of 65 euros share.The market isn’t so sure. Scout24’s shares barely moved in response. It’s not hard to see why. To get to this higher value would require an uplift in operating performance. Scout24 already trades on 19 times expected Ebitda, nestling between real estate and auto peers Rightmove Plc and AutoTrader Group Plc. That feels about right given it’s a hybrid of the two. To be worth substantially more, the company will have to lift revenue and margins while maintaining its valuation multiple. That probably means raising prices. Suppose Scout24 could lift Ebitda from the 321 million euros expected this year to 375 million euros, a 17% jump, and nudge its valuation multiple a little higher to 20 times. That would imply an enterprise value of around 7.5 billion euros. Deduct net debt and the equity would be worth 6.8 billion euros, or 63 euros a share. Increase leverage via a buyback and Elliott’s share price target isn’t far off. It’s easier said than done. Elliott reckons a sale or demerger of the auto arm would help speed things along. Not only would it likely fetch a full price if there were competing bids, but Scout24 management could focus on lifting the performance of the real estate business. Perhaps.The danger is that Elliott has made change harder to achieve by blatantly telling the board what to do. The forthcoming annual meeting will see three new directors nominated. That provides a chance for Elliott to put forward an alternative slate. But suspicions have lingered around hedge funds and private equity in Germany ever since 2005, when politician Franz Muntefering described them as “swarms of locusts” that devour companies and destroy jobs. Elliott’s approach may be friendly to other shareholders, but the firm will need to tread carefully if it ups the pressure. The best hope is that a bidder now surfaces with an offer for the auto business that management can’t refuse. That would give Scout24 management a pretext to re-think leverage levels for what remains and adopt much of Elliott’s thinking without it looking that way. But whether that happens is not in Elliott’s hands.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: Stephanie Baker at stebaker@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- Moody's
CentralSquare Technologies, LLC -- Moody's downgrades CentralSquare's CFR to Caa1; outlook is negative
Moody's Investors Service ("Moody's") downgraded CentralSquare Technologies, LLC's ("CentralSquare", formerly known as SuperMoose Borrower, LLC) Corporate Family Rating ("CFR") to Caa1 from B3, and Probability of Default rating ("PDR") to Caa1-PD from B3-PD. Moody's also downgraded the ratings on the company's first lien credit facilities to B3 from B2, as well as the ratings on CentralSquare's second lien term loan to Caa3 from Caa2. The rating downgrades are driven by CentralSquare's weaker than expected operating performance since the company was formed in September 2018, diminished liquidity, and Moody's expectations of softer than expected operating results and cash flows over the next 12 to 18 months.
- InvestorPlace
Recent Deals Will Help Salesforce More Than They Will Salesforce Stock
Salesforce (NYSE:CRM) stock moved modestly higher on Thursday, trading on word that it had closed its acquisition of Tableau Software. Given the visual analytics capabilities and the massive growth forecasted while Tableau traded on a separate ticker, it will likely become a valuable acquisition for CRM stock.Source: Shutterstock CRM continues to make other deals as well. A recently announced partnership with Alibaba (NYSE:BABA) should also increase its reach into the world's second-largest economy. This could help Salesforce achieve one of its goals of doubling sales by fiscal 2023.However, despite these moves, CRM stock has seen falling multiples and little price action since the beginning of the year. This calls into question what it will take to boost CRM. Until investors get an answer to that question, I see little reason to own Salesforce stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tableau, Alibaba Should Boost Salesforce RevenuesFew question the premise that Tableau will add significantly to Salesforce's growth. When Tableau traded as a separate company under the DATA ticker, analysts predicted 680% profit growth this year and 31% the next. Given that rate of increase, CRM probably made a wise purchase despite paying more than 12-times sales for the company. * 8 of the Most Shorted Stocks in the Markets Right Now Further, partnering with Alibaba gives CRM a foothold into China. The deal makes Salesforce the only enterprise customer relationship management (CRM) software that Alibaba will sell on its platform. Salesforce Stock Could Still StruggleHowever, I think traders want to know whether these deals will reinvigorate CRM stock. The company recovered quickly from the market slump back in December. Still, it has seen little movement in the price since February.Many also wonder if valuations will recover to previous levels. The forward price-earnings (P/E) ratio stands at about 60. That may appear high by S&P 500 standards. However, that multiple has fallen far from its average five-year P/E ratio of about 274. Moreover, this year, analysts expect an earnings increase of only 5.1%. Click to EnlargeAdmittedly, I would treat this lower growth as an anomaly since Wall Street also projects average annual profit increases of 29.58% per year over the next five years. Still, that comes in below the 47.2% average for the previous five years.We have also begun to see indications of a downtrend in the charts. As InvestorPlace feature writer James Brumley mentions, CRM stock has struggled to stay above its 200-day moving average. In June and July, bulls rescued the Salesforce.com stock price. Still, with no significant price action since February, repeated tests of this level should cause concern. CRM Saw a Huge Run-Up Over the Last 10 YearsOver the past 10-plus years, CRM stock has seen an incredible run. In November 2008, the Salesforce.com stock price fell as low as $5.21 per share. Today's price of almost $155 per share represents an increase of nearly thirty-fold!Salesforce's Software as a Service (SaaS) has become a disruptor across the tech industry. Although companies such as Microsoft (NASDAQ:MSFT), Oracle (NASDAQ:ORCL) and SAP (NYSE:SAP) offer competing products, they have not threatened Salesforce's leadership in CRM software.Still, stock prices depend on the future. Salesforce should remain a leader in its industry. However, recent deals have not stopped the multiple compression in CRM. Unless the company can find a larger catalyst, investors may see little near-term profit in Salesforce stock. Final Thoughts on CRM StockThe Tableau and Alibaba deals help Salesforce.com, but they may not help to boost CRM stock. Salesforce stock has seen massive increases over the last 10-plus years. Its SaaS capabilities have transformed tech and buying Tableau should continue this market leadership.However, it remains uncertain how much longer Salesforce stock can defy gravity. The forward P/E ratio has fallen back to double digits. As mentioned before, recent deals have done little to rescue the falling valuation.CRM stock reports its earnings on Aug. 22 after the closing bell. From there, investors should have a better indication of what these deals do for this equity.I do not see a massive downturn occurring in this stock. However, I also do not think the Tableau buyout or the Alibaba deal will stop this multiple compression. With high expectations and the lack of additional catalysts, I do not see what will.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 of the Most Shorted Stocks in the Markets Right Now * 7 Charts That Should Concern Marijuana Stock Investors * 8 Monthly Dividend Stocks to Buy for Consistent Income The post Recent Deals Will Help Salesforce More Than They Will Salesforce Stock appeared first on InvestorPlace.
- Bloomberg
Activist Investor Elliott Holds Scout24 Stake, Demands Strategy Review
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Elliott Management Corp. demanded German classifieds group Scout24 AG split itself in two and pursue a bigger share buyback to boost investor returns after a sale of the company fell through in May.The U.S. activist investor, which disclosed a 7% stake in Scout24 on Monday alongside a letter laying out its position, said the company should sell its car listing business and focus on its real-estate unit, a move that Elliott predicted could lift the stock close to 65 euros a share. That’s well beyond the company’s previous record and more than twice its initial-public offering of 30 euros in 2015.“We believe there is a growing demand among a wide array of stakeholders for Scout24’s leadership to demonstrate a level of urgency that has thus far been lacking,” Elliott said.Scout24 has been vulnerable to an activist since its shareholders rejected a 46-euro-per-share offer from private equity firms Blackstone Group LP and Hellman & Friedman in May. Last month, the company announced it would simplify its structure to better focus on its two biggest businesses -- auto and real estate -- as well as pursue a 300 million-euro ($334 million) share buyback. For Elliott, the moves aren’t enough.The stock is now trading near its record high, closing Friday at 50.25 euros, and is up about 25% this year. The shares rose 0.7% as of 12:08 p.m. in Frankfurt, while the broader Stoxx Europe 600 Index was down 1.6%.Elliott said it has outlined its views for a breakup of Scout24 in meetings with managers of the company, whom it said should never have recommended the Blackstone-Hellman & Friedman offer.The AutoScout24 car business and the Immobilienscout24 real estate unit “do not have any material synergies sitting under one roof,” Elliott said, arguing that the existing structure doesn’t allow for resources to be allocated efficiently across divisions and employees don’t have proper incentives.In a statement, Scout24 said it has had active discussions with shareholders including Elliott in the past few months, before and after announcing its new strategy and committed to continue the dialogue. “We have announced comprehensive steps to strengthen both core businesses, continue to grow revenue while increasing operational efficiency and capital structure optimization,” Scout24 said. AutoScout24 SuitorsThere is rumored or confirmed interest from potential buyers in AutoScout24, and Immobilienscout24 is worth more than 5 billion euros ($5.6 billion) alone, almost as much as the entire company, Elliott said.A number of competitors could bid for AutoScout24, Germany’s second-biggest car listings business after EBay Inc.’s Mobile.de, with 1.1 million listings and 1.5 million listings, respectively.Softbank Group Corp.-backed Auto1 Group GmbH has expressed interest in buying the business in the past, according to people familiar with the matter, who asked not to be identified because the deliberations were private. And German publisher Axel Springer SE, which is being acquired by KKR & Co., has been seen as a potential suitor by analysts at Liberum, who valued AutoScout24 at 2.3 billion euros in a note last month.Spokeswomen for Auto1 and Axel Springer declined to comment.Elliott’s six-page letter to Scout24, dated July 26, outlines what the activist sees as the company’s potential, what it views as “missed opportunities” and its opinion on Scout24’s path forward. Addressed to Chief Executive Officer Tobias Hartmann and Supervisory Board Chairman Hans-Holger Albrecht, it’s replete with strong criticisms. Elliott said Scout24’s current share buyback plan was “grossly lacking in ambition.”The investor complained that Scout24’s executives had heard the fund’s ideas privately and promised to give feedback on its proposals, but instead issued a July 19 press release with its strategy update that “widely missed the mark,” according to Elliott.Elliott in GermanyScout24 adds to Elliott’s campaigns in Germany, where it has recently targeted pharmaceutical giant Bayer AG, software company SAP SE and industrial firm Thyssenkrupp AG.Elliott wants Bayer to settle legal claims linked to products from its Monsanto unit to unlock shareholder value. SAP has pursued a restructuring since Elliott disclosed a 1.2 billion-euro stake in April. At Thyssenkrupp, the chief executive officer and chairman resigned following criticism from investors including Elliott, who derided the company’s slow turnaround and what they see as its poor share price performance.(Updates with Scout24 statement in eight paragraph, context throughout.)\--With assistance from Frank Connelly.To contact the reporters on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net;Eyk Henning in Frankfurt at ehenning1@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Benedikt KammelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- Reuters
UPDATE 2-European stocks dive to 2-month lows on China worries
European shares sank to a two-month low on Monday as a global sell-off spurred by trade tensions deepened, sending China's yuan to its lowest in more than a decade and sinking trade-sensitive mining, luxury and technology stocks. The pan-European STOXX 600 index fell 2.3%, which, taking into account Friday's losses, made for the biggest two-day drop in more than three years as traders dumped shares in favour of perceived safe-havens like government bonds. The yuan's move on Monday was viewed as a clear sign China would not back down in the face of President Trump's threat of new tariffs on imports, meaning the trade conflict may get worse.
- PR Newswire
SAP Kicks Off First SAP.iO Foundry in Asia
TOKYO , Aug. 5, 2019 /PRNewswire/ -- SAP SE (NYSE: SAP) today announced the launch of the first SAP.iO Foundry in Asia : SAP.iO Foundry Tokyo. Over the next 12 weeks, SAP.iO Foundry Tokyo will accelerate ...
- Moody's
Sappi Papier Holding GmbH -- Moody's announces completion of a periodic review of ratings of Sappi Limited
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Sappi Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
- Zacks
Factors to Consider Ahead of Apple's (AAPL) Q3 Earnings
Apple's (AAPL) fiscal third-quarter results are expected to be hurt by lower iPhone sales, thereby putting the onus on the non-iPhone segments to perform.
- Market Realist
SAP SE Partners with Esri to Deliver Database-as-a-Service
Global leader in location intelligence Esri has added support for SAP SE's (SAP) cloud platform.
- Simply Wall St.
What Does SAP SE's (FRA:SAP) P/E Ratio Tell You?
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll show how you can...
- Investopedia
Europe ETFs Jump Amid Hopes of Brexit Breakthrough
European ETFs rallied Tuesday after Britain's Conservative party instilled Boris Johnson as its leader. Trade these ETFs ahead of the Brexit deadline.
- Bloomberg
EQT-Backed SAP Rival Eyes Stock Market Return as Early as 2020
(Bloomberg) -- IFS AB, the Swedish software maker owned by EQT Partners, is on track for a stock-market listing as early as 2020.It’s "very likely" that IFS, which competes with larger rivals SAP SE and Oracle Corp., will IPO late next year or the year after, Chief Executive Officer Darren Roos said in an interview.IFS will by the end of 2021 generate "well over $1 billion in revenue,” said Roos, who joined IFS last April after four years in top positions at SAP. EQT declined to comment.IFS, which employs about 3,700 staff, says its products are cheaper and easier to implement and use than those of its bigger rivals, which tend to lock customers into long maintenance contracts. IFS says it offers clients the flexibility of up- or downgrading its standard software on the go, and gives them a choice whether they want to move to the cloud or not.More than half the company’s license revenue in the second quarter came from new customers, causing IFS to raise its sales guidance for the year to $711 million.EQT bought IFS in 2015, when it was listed on Sweden’s stock exchange. The private equity firm has since took the company private and bolstered it with several acquisitions, including that of U.S. cloud software firm Acumatica last month. IFS’s new listing would likely be outside Sweden, Roos said.\--With assistance from Sarah Syed.To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Andrew BlackmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
