SAP SE: Solid Performance in a Dynamic Market Environment

The latest investor letter from Polen Capital regarding the 'Polen Global Growth Strategy' for the third quarter of 2024 provides intriguing insights into the current market volatility, which returned towards the end of the year. The third quarter contrasts with the previous phase, which was characterized by intense trading in the artificial intelligence sector. With a return of 3.85% gross (3.54% net), the strategy lagged behind the MSCI ACW Index, which achieved an impressive return of 6.61%. The Polen Global Growth Strategy specifically highlights the stock of SAP SE, a global provider of applications, technologies, and services. Last month, the value of SAP's stock increased by 0.42%, while it rose by a remarkable 54.32% year-over-year. On November 14, 2024, the stock closed at a price of $231.40 with a market capitalization of $271.765 billion. SAP SE played a pivotal role in the portfolio performance of the third quarter, both relatively and absolutely. The company's success is reflected in a solid quarterly report characterized by a strong cloud surge and disciplined execution of its transformation program. This strategy allows SAP to focus its resources on significant growth opportunities. Thanks to its robust business model, which is indispensable to many customers, SAP remains well-positioned for the long term. The company recorded revenues of 8.5 billion euros in the third quarter, representing an annual increase of 10%. Despite SAP's potential strength as an investment, Polen Capital currently sees greater profit potential in the AI stock sector, promising not only higher but also quicker returns. Currently, Polen Capital does not count SAP among the 31 most sought-after stocks by hedge funds, although the number of funds holding this stock has increased compared to the previous quarter.