SAP A.G. Message Board - Msg: 5376075

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Technology Stocks : SAP A.G.

SAP 239.92

+0.9%

11:48 AM EST

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To: LindyBill who wrote (1878)	7/31/1998 1:39:00 PM
From: bigredfreak	Read Replies (3) of 3424

SAP: great company, but it's market cap is just totally insane. True, they are the market leader, but this market is still really young and by no means is it clear that they are going to dominate like MSFT dominates its market. The market cap comparison between SAP (77 billion) and PSFT (8 billion) is just totally out of whack. One key metric is that PSFT's license revenue growth rate is about twice that of SAP's (SAP includes maintenance revenues in their license revenue numbers ... PSFT does not) ... this is key indicator for future revenue growth. I see the PSFT/SAP market cap gap shrinking in a big way over the next several years ... just as the revenue difference between the two shrinks. For those of you who have benefited for the huge gains in SAP stock over the past 18 months ... congratulations ... I never had the guts to jump in. I really didn't think they could continue to grow revenues at the 60% clip. But I'd highly recommend taking some profits over the next couple months as the NYSE hype ends and SAP starts reporting numbers that can be easily compared to other software vendors numbers.

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