SAP SE (NYSE:SAP) downgraded to Market Perform after CRB growth slows to lowest rate in 9 quarters. Q4 earnings beat estimates with non-IFRS EPS of €1.62 and operating profit of €2.83 billion, but total revenue of €9.68 billion fell short, cloud revenue at €5.61 billion missed expectations.

Cloud backlog growth for SAP slowed to 25% in constant currency, marking its slowest rate in nine quarters. The slowdown was attributed to larger transformations with longer ramp periods and geopolitical tensions driving customers towards Sovereign SaaS options.

Stock down ~15% on Thursday and ~18% year to date, compared to 2% increase for Russell 3000 and S&P 500. SAP SE (NYSE:SAP) is a leader in ERP software leveraging AI. While potential exists for investment, other AI stocks offer greater upside potential and less downside risk.

Read more at Yahoo Finance: Citizens Downgrades SAP SE (SAP) After CRB Growth Slows to Nine-Quarter Low