SAP shares extended a months-long downtrend on Wednesday, sliding to their lowest level since August 2024. The decline has erased roughly $130 billion of market capitalization since last year’s peak, representing about a 10% drop in the company’s valuation over 12 months. Traders pointed to profit-taking in technology names and heightened concerns over the pace of AI-related spending as catalysts for the selloff.

In the third quarter, SAP reported a 23% year-over-year increase in its cloud backlog, underscoring resilient demand for subscription-based offerings. EBIT rose 19% compared with the prior year, driven by cost discipline and higher software revenue. Management highlighted several large enterprise deals leveraging AI-driven modules for supply-chain optimization and predictive maintenance, signaling sustained momentum in the digital-transformation pipeline.

Analysts maintain a Hold rating on SAP, citing a solid growth-at-a-reasonable-price (GARP) profile with forward non-IFRS EPS estimated at $8.50 for the next 12 months. At approximately a 30x P/E multiple, consensus models project around 10% upside. However, bearish technical indicators—such as the share price trading below both its 200-day and 50-day moving averages—pose a risk of further downside before any meaningful recovery in investor sentiment.