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Europe's most valuable firm SAP flags U.S. trade slowdown but says Japan deal gives 'hope'

1. SAP faces delayed decisions from U.S. customers due to tariff tensions. 2. A new Japan trade deal offers cautious optimism for SAP's growth. 3. SAP's Q2 revenue rose 9% but fell short of forecasts. 4. The company's cloud services backlog increased by 28%, indicating strong demand. 5. Analysts express mixed sentiments, with some lowering target prices for SAP.

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FAQ

Why Neutral?

Revenue growth of 9% is positive but below expectations, indicating underlying caution among investors. Similar scenarios in the past, like mixed earnings reports, have led to stagnant price movements.

How important is it?

The article discusses vital elements like revenue performance and customer decision-making, crucial for SAP's market position.

Why Short Term?

The immediate impact stems from quarterly performance and customer decision delays, which could stabilize as uncertainties decrease.

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