BERLIN— SAP SE shares plunged more than 20% Monday after Europe’s biggest technology company by sales scrapped its profit targets for the year and said measures to thwart a rebound in coronavirus infections would weigh on business through the middle of next year.
The biggest intraday drop for SAP shares in 21 years wiped more than $30 billion off the company’s market value and put the spotlight on Christian Klein, who became sole chief executive of the business software group in April and since then has announced two profit warnings.
SAP shares closed at €97.50 on the Frankfurt Stock Exchange, down 21.94%.
Following a lackluster earnings report for the three months to Sept. 30, Mr. Klein said weak demand from business customers meant SAP would be two years late in meeting its goals to boost revenue from cloud services and increase total sales and profit.
Mr. Klein inherited an ambitious five-year plan to significantly boost profit margins and shift a large part of the company’s business from the sale of software licenses, once SAP’s biggest revenue stream, to subscription-based cloud services, a more profitable and financially predictable business model that emphasizes recurring revenue.