SAP SE (SAP) Redesigns the Business Model: From Perpetual License to SAAS

Investment management company Ave Maria recently released its “Ave Maria World Equity Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the first quarter, the fund returned 6.54% compared to the MSCI All Country World Index’s 8.20% return. Since its inception on April 30, 2010, the fund’s annualized return was 7.60% compared to the 9.06% annualized return for the benchmark. You can check the top 5 holdings of the fund to know its best picks in 2024.

Ave Maria World Equity Fund highlighted stocks like SAP SE (NYSE:SAP), in the first quarter 2024 investor letter. SAP SE (NYSE:SAP) is a global provider of applications, technology, and services. The one-month return of SAP SE (NYSE:SAP) was -2.70%, and its shares gained 38.42% of their value over the last 52 weeks. On June 17, 2024, SAP SE (NYSE:SAP) stock closed at $190.02 per share with a market capitalization of $221.797 billion.

Ave Maria World Equity Fund stated the following regarding SAP SE (NYSE:SAP) in its first quarter 2024 investor letter:

"SAP SE (NYSE:SAP) provides enterprise application software products worldwide. SAP is successfully transitioning from a perpetual license model to a SAAS model, which we believe will lead to an increase in TAM (total addressable market), higher margins and lower capital intensity."

A data centre room with cloud technology, illustrating the enterprise application software services.

SAP SE (NYSE:SAP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held SAP SE (NYSE:SAP) at the end of the first quarter which was 22 in the previous quarter. SAP SE (NYSE:SAP) reported first-quarter revenue of nearly $8 billion, up 9% year-over-year. While we acknowledge the potential of SAP SE (NYSE:SAP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed SAP SE (NYSE:SAP) and shared the list of biggest supply chain companies to know. Harding Loevner Global Equity Strategy highlighted SAP SE (NYSE:SAP) in its first quarter 2024 investor letter. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.