Buy SAP Shares: The Complete Guide To Investing
Published: October 4, 2020 by Valentina
Not everyone knows the name of the third software company in the world and probably few expect that after Microsoft and Adobe, we can find a German company – SAP – which is actually fighting for the third place with the American giant Oracle. The question then is: “Is buying SAP shares a good investment or not?”
This guide will answer this question comprehensively. Indeed, OnlineTradingCourse is a leading site in evaluating the shares and, in the case of SAP, we will focus on the company, economic data, developments, and future prospects of the stock. All of this in order to understand if buying SAP shares is a really good investment or has some pitfalls.
Here are the steps we need to follow, if we want to buy SAP shares:
- Choose the broker where to invest,
- Start with the Demo account without risks,
- When you have enough experience, you can move on to investing for real.
Let’s start from the first step: To buy SAP shares, you need a CFD broker like eToro that allows you to trade safely and without paying commissions. Let’s see the main brokers suitable for investing in shares:
Min. Deposit: 200€
Min. Deposit: 400€
Min. Deposit: 10€
Min. Deposit: 100€
Buy and sell CFD
Min. Deposit: 100€
Min. Deposit: 250€
Min. Deposit: 250€
Min. Deposit: 250€
Buy SAP Shares: Information
The largest listed software company in Europe is called SAP (Systems, Applications, and Products in data processing) and is a German company.
With a market capitalization of over € 165 billion, it is the largest German company ever.
This company deals with business softwares ranging from accounting to manufacturing processes, warehouse management, and human resources.
The company was born in 1972 from the idea of 5 former IBM engineers who started a project destined to make the history of technology companies in Europe.
From those years, there has been a succession of innovations that led the company to become one of the leaders in the sector.
At the end of 2019, SAP had approximately 100,330 employees worldwide, working in 120 branches to distribute products to over 335,000 customers. Think that about 12 million users use SAP softwares every day!
SAP Shares: Real-time quotation and price
SAP: Business Model
The SAP stock is part of the DAX in Frankfurt and the Euro Stoxx50, one of the most important stock market indices in the world and is also listed on the New York Stock Exchange.
The SAP business model is divided into 2 main branches:
- Applications, technology, and services
- SAP Business Network
The “Applications, Technology, and Services” segment deals with the sale of software licenses, subscriptions to its cloud applications and related services. The SAP Business Network segment manages cloud-based networks and professional services.
2019 was a very profitable year for SAP and even 2020, despite the coronavirus pandemic that has shocked the world, is giving excellent results thanks to smart working that has increased the need to use cloud softwares.
Just last year, SAP switched from the classic model of sales and subscription of software licenses to the cloud model and despite the first difficulties related to the change of technology, 2019 ended with a total turnover of 27.5 billion euros, equal to + 12% year on year.
This change has also led to sacrifices for the company which had to cut 4,400 jobs and a figure between 800 and 950 million euros.
How to buy SAP shares
The easiest way to buy SAP shares is to use CFD Brokers, i.e. intermediaries who offer, through their trading platforms, contracts for difference (CFDs in fact).
These contracts, which are as safe and regulated as Futures, allow you to trade any type of asset, whether they are stocks, indices, commodities, cryptocurrencies or ETFs, and have two main advantages:
- They offer the possibility to invest both up and down (short selling)
- They don’t charge commissions
On the practical side, investing in SAP shares with CFDs is done in this way:
- To buy SAP shares you need to buy the “SAP” CFD and you will earn money, if the share prices go up.
- To invest on falling SAP stock prices, you need to sell the “SAP” CFD and you will earn if the prices fall
Once the desired profit has been reached (up or down), just close the transaction, and any profit will be net, without adding commissions.
Buy SAP shares with the best platforms
Trading platforms are the type of software we use to trade with stocks on the market and must be chosen very carefully, because they can make an investment profitable or not.
And how do you choose the best platforms?
First of all, we only rely on brokers (who offer the platforms) that are safe, reliable, and regulated by FCA or CySEC. After that, we evaluate all the services offered, the training, and the support provided.
To buy SAP shares, we made an evaluation of the best platforms on the market and our choice led us to these CFD brokers: eToro, ForexTB and IQ Option.
eToro: Intuitive platform to buy SAP shares
eToro deserves a major consideration among online brokers, because it is the most used trading intermediary in the world and its platform is considered the most intuitive and practical on the market.
Investing in SAP shares with eToro is very simple and in the screenshot below you can clearly see why:
To buy SAP shares (or sell them), you have to click on “Invest”, decide whether to buy or sell the stock, and how much to invest in the single operation.
As we mentioned earlier, when we choose a broker, we must pay attention to the reliability and that of eToro is confirmed by the FCA license for the UK and by numerous other international authorizations.
Not all traders love to trade “manually”, some prefer indeed automatic investments. This intermediary is a leader in this, thanks to the revolutionary Copy Trading system, that allows you to copy the operations performed by the best traders in the world (on eToro) automatically and for free.
Copy Trading works like this:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here are some of the best eToro Traders:
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Free Course and Trading Signals
ForexTB is well known in the crowded world of CFD brokers, because of its high-level free services for the investors.
The first service is very useful for those who want to buy SAP shares and have no trading experience. In fact, it is a free trading course, considered among the best in the market, which explains in detail the basics of technical analysis and of online investments.
To further differentiate itself on the market, ForexTB offers two trading platforms, both free:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
Below, you can see a screenshot of the web platform of the SAP stock as it appears on ForexTB:
Investing in SAP shares is very simple: Just click on sell or buy and decide how much to invest in the operation.
In terms of reliability, this broker has the CySEC license, that allows it to trade throughout Europe.
But the most appreciated service of this broker is the free Trading Signals. These are precise indications, the result of studies by Trading Central, with a success rate of 70%. To get them for free just use the official link below:
IQ Option: Buy SAP shares with only 10 Euros
IQ Option has reached a considerable level of popularity. It is a safe and authorized broker in the UK (FCA licence), but what has made it famous, is the minimum deposit required to open a real account.
This deposit is much lower than most of the competitors on the market, in fact only 10 Euros are enough to invest in SAP shares or any other title.
Novice traders often do not have large capital available but want to experience the thrill of a real investment anyway. Even few Euros offer very different sensations compared to a Demo account, where money is only virtual.
IQ Option wants to improve the education and knowledge of its users with a totally free educational area, where you can find information and courses on every topic related to online trading.
To practice, however, there is a Demo account, which allows you to not risk anything.
Buy SAP shares: Advantages
SAP shares are undoubtedly a very interesting investment and the graph below, with the trend of the last 5 years, is a clear demonstration of this:
The growth trend is very evident and it seems that the crisis we are going through has given new life to the stock, which is continuing to set new all-time highs.
The advantages of SAP shares derive from the flexibility of the softwares it offers to companies and therefore, from the uniqueness of its services and products.
The customization possibilities of the softwares developed by SAP allow it to emerge in a sea of competitors which, however, do not have the skills and organization of this German giant.
These features allow SAP to meet the needs even of many complex companies and international government organizations.
The success of this company worldwide has given confidence to investors, who rightly continue to bet on this “purebred horse”.
The main competitors of SAP are practically all American. In Europe there are no companies that can worry the German group. The main antagonists of this company are:
Buy SAP shares: Forecast
Several short-term signals, together with an overall good trend, are considered as positive, leading SAP shares to be valued as a great invstement in both the short and long term.
The 6-month chart shows us that the crisis due to the coronavirus has done nothing but give strong momentum to the SAP stock, which has quickly recovered to pre-crisis levels, reaching above all-time highs.
The analyzes of the major international investment banks help to complete the picture on the future forecasts for the SAP share. The orientation of the major investors is positive, with a strong propensity to buy the shares of the German company, considered one of the best European companies to choose.
- Berenberg Bank has set a price target of € 148.00 ($ 174.12) on SAP and assigned the company a “buy” rating
- Deutsche Bank has set a price target of € 144.00 ($ 169.41) on SAP and assigned the company a “buy” rating
- Baader Bank has set a target price of € 125.00 ($ 147.06) on SAP and assigned the stock a “buy” rating
- The UBS Group has set a target price of € 142.00 ($ 167.06) on SAP and assigned the share a “buy” rating
- Independent Research has set a target price of € 160.00 ($ 188.24) on SAP and assigned the stock a “buy” rating
- Barclays is very positive and has given the company a “Buy” rating with a target price of € 158.00.
Buy SAP Shares: Target Price
Wall Street analysts also issued positive valuations for the SAP stock. The 12-month target price is € 160.00 per share.
We have carefully analyzed this German company and the conclusions can only be positive. It is the third largest software company in the world, the first in Europe, with a constant growth.
The forecasts of leading analysts agree that buying SAP shares is an excellent investment, especially in the long term.
Now, you just have to choose the right broker and start investing in SAP shares.
If you have little trading experience, it is best to start with a Demo account, which is risk free. Then, you can make the minimum deposit required by the CFD Broker of your choice and trade on real markets. Here are the official links to access the Demo accounts of the best trading platforms:
- Access the eToro Demo account for free by clicking here
- Register on ForexTB and try the Demo account by clicking here
- Access the IQ Option Demo account for free with this link
SAP is a German company that creates business softwares. The most important in Europe and one of the largest in the world.
Lead analysts’ forecasts for SAP are bullish over the long term.
The 12-month target price for SAP shares is € 160.00 per share.
CFD brokers like eToro offer the best platforms to buy SAP shares safely and without paying commissions.