SAP and ServiceNow: Is the software giants’ gold rush already a thing of the past?
The spectacular gold rush of the past 20 years has turned into a drastic reality check for software stocks, with visionary AI promises being mercilessly measured against hard revenue data. Former darlings SAP and ServiceNow have recently seen their share prices halve, as investors now demand tangible proof of successful AI monetization rather than vague promises of a bright future. Goldman Sachs analysts also emphasize that the software giants’ traditional, seat-based licensing models must rapidly shift toward usage- and results-oriented pricing structures. Industry observers also warn of a transition phase lasting several years, during which the market will digest the established providers’ actual AI adoption and allow for a reliable revaluation.
A representative Bitkom study fuels this skepticism by finding that 85% of domestic companies want to break free from their oppressive dependence on US cloud infrastructure. This tectonic shift is bringing European alternatives like SAP back into focus in direct comparison to transatlantic platforms such as Oracle or ServiceNow. Despite the sharp sell-off, optimistic LSEG analysts sense a classic market overreaction and are steadfastly sticking to their “Buy” recommendations. DZ Bank, for example, estimates a fair price target of EUR 213 for the German heavyweight SAP, implying a theoretical upside of over 50%.
Even for ServiceNow, whose share price has plummeted to USD 80, expert consensus remains firmly in optimistic territory with an adjusted consensus target of USD 142.50. The fact that 46 out of 50 market observers are giving the thumbs-up underscores the statistically extremely right-skewed Gaussian curve of current market sentiment. After all, the fundamental business model of digital process automation is operationally completely intact and deeply anchored in global corporate structures. Once the dust settles on this structural transformation, the adjusted valuations should form a solid foundation for the next wave of technological growth. Of 35 analysts covering SAP, 26 are giving it a thumbs-up. So, anticipation is running high ahead of the Q2 earnings reports. ServiceNow is tonight after the NASDAQ market closes, and SAP is first thing tomorrow morning. Let’s hope it all goes well!
TeamViewer: Will a turnaround happen this year?
TeamViewer, the MDAX-listed software company, is fighting hard to regain investor confidence following a sharp drop in its share price and sustained pressure from short sellers. The share has already lost over 60% this year alone, hitting a low of EUR 4.11. However, given a cautious outlook with projected revenue growth of just 0-3%, it remains questionable whether a turnaround will succeed, even as prices have recovered slightly to around EUR 5.81. The current year is primarily being used as an integration phase for the IT specialist 1E, while significant investments in the AI platform TeamViewer ONE are weighing on margins. The main sources of hope are solid growth in the enterprise segment and the achievement of FedRAMP compliance in the US market. With a historically low 2027 P/E ratio of around 5, the valuation suggests that an extremely high number of risks are likely already priced in. 8 out of 16 analysts on the LSEG platform remain moderately optimistic in their consensus and set the average 12-month price target at EUR 8.14, which implies solid upside potential from today’s perspective. The short-term direction of the shares is likely to be largely determined by the upcoming Q2 earnings release on July 28. Caution advised!
DRC Gold: Why DRC Gold Could Be Poised for a Major Valuation Jump
We return to gold—the ultimate store of value in a world of rising geopolitical tensions, soaring government debt, and growing demand from central banks. In its latest market analyses, the World Gold Council shows that central banks continue to strategically build up gold reserves, thereby creating a structural pillar of demand for the precious metal. While established producers such as Barrick Mining and Newmont are already commanding valuations in the billions, investors are increasingly looking to smaller exploration companies with the potential for disproportionately high returns. One company worth a closer look is DRC Gold, which offers a unique opportunity in the heart of the Democratic Republic of the Congo.
The company has secured access to two highly promising gold projects, thereby laying the foundation for a new African growth platform. Through a strategic option agreement, DRC Gold can acquire up to 65% of the Giro and Nizi Gold projects, with additional options even allowing for a stake of up to 75%. Particularly exciting is the location of the Giro project within the legendary Kilo-Moto greenstone belt, just about 35 km from the Kibali mine, one of Africa’s most significant gold mines. CEO and exploration expert Klaus Eckhof knows this region better than almost anyone else, having played a key role in the development of the Kibali deposit, now one of the continent’s largest gold deposits.
Through Giro, DRC Gold already holds historical resources of several million ounces of gold, including the Kebigada Zone and the Douze-Match structure, which together represent a historical inventory of more than 4.3 million ounces. The crucial next step is now to convert this historical data into a modern NI 43-101-compliant resource estimate, which could serve as an important valuation anchor for investors. At the same time, the Nizi project, which has been largely unexplored to date, offers additional potential, as the historic King Leopold Mine produced gold with exceptional grades decades ago. Modern exploration technologies could provide a completely new perspective on an area that has been virtually dormant for a long time.
IIF host Lyndsay Malchuk speaks with founder Klaus Eckhof about the unique opportunities for his gold projects in East Africa.
Management’s vision goes well beyond a mere exploration story. DRC Gold aims to establish a major gold platform in the Congo with a potential pipeline of up to 10 million ounces. This strategy is supported by an experienced leadership team and access to financing expertise through board member David Wargo, who has long-standing contacts in the capital markets. The recent transaction with Vertex Wealth also underscores the strategic execution. The issuance of 25 million shares at CAD 0.195 completed the first phase of the project acquisition and simultaneously brought a long-term partner on board. Based on a CAD 22 million valuation, this stock is a true bargain among African gold stocks!
Allocating a stock portfolio is no simple matter right now. This is because the waning uptrends in high-tech stocks can quickly turn into a sharp correction. The situation is different in the precious metals sector. Here, the market has been consolidating for six months, and many stocks have reached attractive entry levels. This is particularly true for DRC Gold, where a new resource estimate is likely to drive price movement soon.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as “Relevant Persons”) currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a “Transaction”). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company.
In this respect, there is a concrete conflict of interest in the reporting on the companies.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is also a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Risk notice
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.
The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.
Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.