SAP: Strong Numbers and Financial Discipline
Strong quarterly results and a commitment to disciplined spending on AI in the future helped the Walldorf-based company see its share price jump by about 10% over the past two trading days. The software giant SAP is responding to the growing financial burdens associated with the use of artificial intelligence through structured cost management. As the company transitions AI from pilot testing to full-scale implementation, high costs are arising from token usage. To manage these costs efficiently, management is now introducing a three-tiered control system.
Employees at the basic level will thus receive a monthly budget of EUR 100 for AI applications. An expanded budget of EUR 500 is allocated for technical roles. Only selected users are permitted to spend up to EUR 5,000 per month. Automatic warning mechanisms are triggered when 50% or 80% of the respective limit is reached. Budgets exceeding these limits can only be approved by senior management. SAP aims to respond to technological change through strict cost management.
The cloud subscriptions segment continues to perform well, with the order backlog significantly exceeding estimates. This operational performance is fueling analyst enthusiasm. The investment bank Jefferies maintains a “Buy” recommendation with a price target of EUR 210, citing not only solid order intake but also the stock’s comparatively low valuation. Deutsche Bank sets a price target of EUR 200 and forecasts an acceleration in cloud growth in the coming years.
JPMorgan, on the other hand, is more cautious. Despite the convincing cloud metrics, the firm points to weaker operating results and declining margins in the past quarter. With a neutral rating and a price target of EUR 175, the analysts emphasize that SAP must deliver stronger earnings growth over the remainder of the year to meet its 2026 earnings targets.
Miivo AI: New Self-Service AI Platform Targets the Billion-Dollar SMB Market
AI specialist Miivo AI is systematically expanding its platform and has introduced a fully automated self-service product with its new Customer Insights tool. Small and medium-sized businesses can use it to analyze customer reviews and sentiment on Google Reviews, Instagram, and Reddit in real time, identify trends, and generate AI-powered responses—all without complex implementation or additional software. With this move, Miivo AI is expanding its offerings into the high-growth area of customer experience management and laying the groundwork for additional recurring SaaS revenue.
The business model targets a massive market. The Canadian company develops AI solutions specifically for small and medium-sized businesses, which until now often lacked access to expensive enterprise applications. The platform aggregates financial, sales, customer, and operational data, provides early warning signals and concrete recommendations for action, and helps companies make more informed decisions. The ecosystem is complemented by features such as business intelligence, lead generation, mobile AI assistants, and automated process control. The goal is to build a comprehensive AI operating system for small and medium-sized businesses.
The company recently received an additional boost from the acquisition of Tandem Partners. The consulting firm, which had previously been closely integrated, has now been fully incorporated, strengthening the company’s operational capabilities, international presence, and existing sales channels and customer relationships. At the same time, management expects efficiency gains and improved scalability of the platform.
The growth strategy is also compelling. Miivo relies on a high-margin self-service model featuring automated onboarding, easy integration into existing ERP, CRM, and accounting systems, and strong customer retention through continuous AI-powered analytics. At the same time, strategic SaaS partnerships are intended to accelerate customer acquisition and keep sales costs low. According to the company, an integration with a regional software provider that serves more than 14,000 small and medium-sized enterprises has already been completed.
With the combination of a growing AI market, a clear focus on small and medium-sized businesses, a scalable SaaS model, and the continuous expansion of its product portfolio, the company, valued at approximately CAD 18 million (around EUR 11 million), is positioning itself in a segment with significant long-term growth potential.
Oracle: High Debt Burden Slows Growth
Oracle is currently experiencing strong operational growth, driven primarily by sustained high demand in the cloud infrastructure and artificial intelligence segments. The company currently reports a backlog of over USD 600 billion. Nevertheless, the company faces financial hurdles. The necessary expansion of data centers requires significant capital. As a result, the company’s long-term liabilities have grown to more than USD 120 billion. Due to the associated risks of negative free cash flow, the rating agency S&P Global recently downgraded the credit rating of the software company.
During the past trading week, the US company announced a strategically important government contract. The US Department of Defense signed a ten-year framework agreement with Oracle. The financial value of this deal amounts to just under USD 7 billion. The contract covers the provision of software solutions for various government agencies. Future users include parts of the military, various intelligence agencies, and the US Coast Guard. The government expects that implementing these IT systems will yield cost savings of approximately USD 440 million in the medium term.
In international financial markets, the announcement of the government contract led to a short-term rise in the share price, but the gain faded over the course of the trading session. Overall, the stock remains in a downward trend. Analysts point out, however, that the share trades at a low P/E ratio compared to its direct industry peers. Future share price performance is likely to depend heavily on whether the company succeeds in generating profits from its rising investments. Until a clear trend emerges, the stock is expected to remain volatile.
The AI boom continues to offer investors numerous opportunities, but the starting points vary significantly. SAP impresses with strong quarterly results and disciplined cost management. With its scalable SaaS model, Miivo AI is positioning itself as an interesting growth story in the SMB sector. While Oracle scores points with cloud and government contracts worth billions, it must first prove that its heavy investments in AI will yield sustainable profits.
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