Buy SAP Shares: complete guide
Published: November 8, 2021 by Andrew
Not everyone knows the name of the third software company in the world and few expect that after Microsoft and Adobe there is a German company, SAP, which is fighting for third place with an American giant called Oracle. But, to buy SAP shares a good investment or not?
This guide will answer your question comprehensively: OnlineTraddingCourse.net is a leading site in evaluating the shares to buy and in the case of SAP we will focus on the company, economic data, developments and future prospects of the stock on the stock exchange, to understand if to buy SAP shares is a really good investment or if it hides some pitfalls.
Here are the steps we need to follow if we want to buy SAP shares:
- Choose the right broker to invest
- Start with the Demo account to be safe
- When you have enough experience, you move on to investing with a real account
Let’s start from the first step: To buy SAP shares you need a CFD Broker like eToro that allows you to trade safely, even for less experienced traders.
How? Through Copy Trading, designed to copy the operations of other traders on the platform in a highly intuitive way.Register on eToro and use Copy Trading for your investments
|🏛 Listed on:||ETR|
|💻 Available on:||eToro and Trade.com|
|💶 Starting investment:||Less than 200€|
SAP Shares: live quotation
The chart shows the updated price of SAP shares. In addition to the current value, it is also possible to check the closing prices of the last sessions, in order to check the current trend.
Buy SAP Shares: the company
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 software 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 were a succession of innovations that led the company to become one of the leaders in the sector.
In 2018, SAP acquired software company Qualtrics International for $ 8 billion.
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 software every day.
How to Buy SAP Shares
According to the traditional view, a direct purchase is required to buy shares.
Let’s cut the bull’s head: this investment method is not the most convenient, by virtue of the high commissions that bank intermediaries require (and which penalize less capitalized traders) and the limit of being able to invest only upwards (having to resign to a loss in case of price drop).
The easiest way to buy SAP shares is to use CFD Brokers, 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 security, be it Stocks, Indices, Commodities, Cryptocurrencies or ETFs, and have two main advantages:
- They offer the possibility to bet both up and down (short selling)
- They allow you to invest small amounts
On the practical side, investing in SAP shares with CFDs is done in this way:
Where to Buy SAP Shares: best platforms
Trading platforms are the software we use to trade with stocks on the stock exchange and must be chosen very carefully because they play an important role in our profitable investments.
How do you choose the best platforms?
First of all, we only rely on safe, reliable and regulated brokers (who offer the platforms), for example by CONSOB or CySEC and then we evaluate all the services offered, the training and support provided to investors.
Let’s see the main brokers suitable for investing in shares:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 10€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
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 we can clearly see it:
To buy SAP shares (or sell them) you need to click on “Trade”, 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 security and that of eToro is confirmed by the authorizations of international level.
Not all traders like to trade “manually”, for reasons of time or experience. eToro is also a leader in this thanks to the revolutionary Copy Trading, a system that allows you to copy the operations performed by other traders on the platform in an absolutely intuitive way.
To access Copy Trading just follow these steps:
- Register on eToro
- In the “People” section, you can choose the traders to copy, based on their returns.
- With a click, Copy Trading will copy the operations of the chosen traders on your account.
- At that point you will get the same returns as these traders (in proportion to the investment made).
To make you understand what returns we are talking about we took a screenshot on some of the traders that you can copy:
Past performance is no guarantee of future performance.Click here and choose which trader to copy
Both Copy Trading and traditional trading can also be tested on a free Demo account, without running any risks, because in Demo the money is virtual.Try the eToro platform by clicking here
For more details you can read our full review on eToro.
Trade.com stands out for its attention to the assistance of traders and for the training it offers free of charge.
CONSOB has registered this Broker also in Europe and this license guarantees safety and reliability.
At the platform level, Trade.com is very innovative. The software used is fast and with a very clear interface. Thanks to a search box, you can easily find any stock in which to invest.
We have mentioned the training offered by this Broker which starts from a trading course, much appreciated for its completeness, which can be downloaded for free from the link below:Download the free course by clicking here
But the course only lays the foundations of trading, to deepen the topics there is an entire didactic area divided into three levels based on the trader’s preparation: basic, intermediate, advanced.
Trade.com is trying to facilitate access to trading with a minimum deposit of only 100 Euros, a figure that is truly within everyone’s reach.
To practice, however, a free and unlimited Demo account is available, which offers all the features of the real account but without the risk of losing money.Click here to sign up for free
If you want to know more, you can read our Trade.com review.
Buy SAP Shares, is it worth it?
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 software it offers to companies and therefore from the uniqueness of the services and products that characterize this company.
The customization possibilities of the software developed by SAP allow it to emerge in a sea of competitors who, however, do not have the skills and organization of this German giant.
These features allow SAP to meet the needs of many complex companies up to the needs of some international government organizations.
The success of this company worldwide has given confidence to investors who rightly continue to bet on this “purebred horse”.
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 software.
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 also led to sacrifices for the company which had to cut 4,400 jobs and a figure between 800 and 950 million euros.
The numbers, however, have proved SAP right, which also closed 2020 with growth from the point of view of the budget, with the cloud computing sector increasingly established and prone to new optimizations.
The high profitability of SAP allows the company to regularly pay a dividend to its shareholders.
Looking at the recent past, from 2015 to today there has not been a single year in which the payment has been suspended and, looking at the numbers, the remuneration is growing strongly.
In 2020, for example, dividends released were 1.58 per share. A year later, in 2021, the coupon detached in May saw a payment of 1.85 per share. The increase in this case was 17% in 12 months.
The main competitors of SAP are practically all American, in Europe there are no companies that can worry the German group and in fact the main antagonists of this company are:
Several short-term signals, coupled with an overall good trend, are positive, leading SAP stocks to be valued as a great buy in both the short and long term.
The 1-year 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 bet on.
Recent rating corrections, according to the projections of 10 analysts, tell us about:
- 6 Buy oriented
- 4 recommend staying in the Hold position
- Nobody recommends the Sell
This does nothing but confirm the good moment of the company, giving rather clear indications on what is the expected trend.
Wall Street analysts also issued positive valuations for the SAP stock.
The 12-month target price is in fact given a strong increase compared to the current value, with a growth of several percentage points from now to one year.
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 and its growth is constant.
The forecasts of the main analysts agree that buying SAP shares is an excellent investment, especially in the long term.
Now you just have to choose the broker to use 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:
SAP is a German company that creates business software, the most important in Europe and one of the largest in the world.
Lead analysts’ forecasts for SAP are bullish over the longer term.
The 12-month target price for SAP shares is up sharply.
CFD brokers like eToro offer the best platforms to buy SAP shares safely.