SAP soars to great heights.
According to Reuters, “German software company SAP (SAPG.DE), overtook Danish healthcare company Novo Nordisk (NOVOb.CO), as Europe’s largest company by market capitalization on Monday.”
“While SAP shares are up 7% so far in 2025, underperforming the broader European STOXX 600 index, which is up 8.3% year-to-date, they have clocked a total return of 160% since the end of 2022, far outperforming the STOXX 600’s 28%.”
Why the growth?
SAP has always been a trusted brand. Organizations depend on SAP for logistics, cloud support, and more.
Now, SAP has been moving into generative AI with full force. And knowing their track record, they will end up with something innovative and successful. But that is yet to be seen.
Novo Nordisk, on the other hand, has underperformed in the trial of an obesity drug, disappointing investors.
This might be a temporary setback. Although one that doesn’t take away from SAP’s strength.