SAP LEAPFROGS NOVO Nordisk to become the most valuable company in Europe

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The SAP program giant has overtaken the Danish drug manufacturer Novo Nordisk to become the most valuable company in Europe, in the latest milestone for growth in the German stock market.

Juice Monday shares increased by 1.5 percent, lifting the market capitalization to more than 314 billion euros, slightly higher than the fact that Novo Nordisk, whose shares fell 1.7 percent.

Last year, SAP shares grew more than 40 percent when investors welcomed the transition of their business customers to the cloud and when the group experienced an enthusiasm for artificial intelligence. Profit for SAP helped power Mine This noticed that this is superior to most major stock markets in the world.

Novo Nordisk has lost half of its market value since last summer because it is struggling to convince investors that it has a great deal of drug control GLP-1.

“In the past, Novo has been a hot action, but what we see is what the excitement has decreased. At the same time, SAP benefits the influx into German actions,” said Emanuel Kau, Barclays analyst.

SAP last year replaced the Dutch semiconductor manufacturer ASM ASML As the largest technology company in Europe.

The SAP, based in Waldorf in the southwest of Germany, is a greater proportion of the German index than the historical automotive sector of the country, which includes Volkswagen and Mercedes-Benz.

Weighing SAP in Dax has repeatedly violated a 15 percent restriction, which forced Deutsche Börse to present a new unauthorized version of the index last month.

Founded by five former IBM employees in 1972, in recent years, SAP has made progress in switching its model from selling licenses to the premises for cloud services, a more predictable and profitable business.

Analysts expect that this year cloud income will grow by 29 percent, while total revenue will be increased by 13 percent to 38.5 billion euros.

Analysts also emphasized the potential of the new product that SAP presented last month, which allows customers to bind their data with third parties and analyze them through AI agents.

Despite the fact that the company’s shares decreased by about 10 percent than last month, its competitor for the position of the most valuable company decreased more dramatically.

Novo Nordisk, which in the last two years encountered a French luxury group LVMH for the first place in Europe, this month published a second set with worse than expected Test results for Cagrisema, potential successor to Ozempic and Wegovy treatment.

Novo uncertain product is a success story that saw the sale of existing Drugs with obesity intersect Last year more than 50 percent.