SAP shares jump to an all-time high on cuts, AI focus
Shares of SAP rose to an all-time high after it announced the restructuring of 8,000 jobs to focus on AI-driven units. The German software company forecast cloud revenue growth of 24%-27% in 2024.
IGTV financial analyst Angeline Ong looks at the share reaction and what’s driving the shift.
(AI Video Summary)
SAP stock prices significantly increasing
SAP, a big technology company, is seeing a big increase in their stock prices and the amount of their stocks being traded. This is because they are expecting to make a lot of money from their cloud business and they have plans to reorganise and cut 8,000 jobs. They want to focus more on using artificial intelligence (AI) in their business, and they are even experimenting with a new AI technology called OpenAI's chat GPT. This is helping them develop new products faster than their competitors.
Impact of AI on fellow tech companies
Other big technology companies like Microsoft and Alphabet Inc (the parent company of Google) are also going through changes and focusing on AI. They are doing things like laying off employees and restructuring their companies. They believe that AI will make them a lot of money in the next ten years, although they don't have a clear plan for how to make money from AI just yet. They are also using automation to make work easier for their employees.
Because of SAP's good news, their stocks have gone up by seven percent, which is the highest they've ever been. This means that the company is doing really well in terms of their stock prices. The increase in stock prices has slowed down a little bit, but people are still watching it closely.
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