Profit with Cloud & AI: Why SAP, MiMedia Holdings, and Palantir must be your focus NOW

SAP – How cloud and AI are strengthening the digital transformation

SAP's strength in 2025 lies in its complete transformation from a traditional software provider to an integrated cloud and AI platform. What makes it special is the seamless integration of ERP, industry-specific solutions, and data analysis on a single platform – the Business Technology Platform (BTP). This means that customers do not receive isolated tools, but rather a comprehensive ecosystem. Lower entry barriers, predictable costs, and flexible scaling make the Cloud Suite S/4HANA a driving force. The approach is crucial: technology, data sovereignty, and agility are consistently geared toward efficient business processes and customer success.

The latest quarterly figures underscore the viability of the strategy. Cloud revenue rose by a robust 28% on a currency-adjusted basis, led by the ERP suite with 34%, which now accounts for the majority of these revenues. The 35% jump in operating profit is remarkable, driven by a significantly improved cost structure. This is where internal digitalization is having an impact. AI-supported automation, for example through "digital twins", optimizes product launches, maintenance, and support. The goal of decoupling revenue growth and operating costs appears to be working.

New partnerships, such as the one with Alibaba for the Chinese market, and major customers such as L'Oréal and BAE in the supply chain and HR sectors demonstrate the Company's appeal. The "Business Data Cloud" is developing into a relevant add-on for larger deals. Nevertheless, SAP must remain vigilant, as prolonged sales cycles, particularly in the US public sector and in industry, due to trade uncertainties, require flexible pipeline management and consistently efficient personnel management. The forecast for 2025 was confirmed by the latest quarterly figures. The share is available for EUR 253.00.

MiMedia Holdings – Cloud innovator with a clever growth path

MiMedia is taking an unusual but clever approach to the cloud market. Instead of expensive direct sales, the Company is focusing entirely on partnerships. Through deals with telecommunications providers and smartphone manufacturers, the app comes pre-installed on millions of new devices, especially in emerging markets such as Latin America and Africa. This saves immense marketing costs and directly opens up a vast, often underestimated user base. The technology is cross-platform and meets high data protection standards. This is important because users manage their highly personal content, such as photos and documents. This creates a strong emotional bond and makes it unlikely that they will switch, which is an ideal basis for stable subscription revenues.

MiMedia made a strategic move on August 6 with a partnership for the Chinese market. The Company brought ADG China on board, an experienced bridge builder for Western tech companies. ADG has two decades of expertise and a dense network of leading Chinese smartphone manufacturers such as Xiaomi, Oppo, and Vivo. This connection is intended to open doors for MiMedia's cloud platform to quickly find its way onto the devices of major OEMs in the region. The aim is to significantly shorten the global growth path and greatly simplify access to one of the world's most important mobile communications markets.

The potential for MiMedia is enormous. While established cloud providers are stagnating in saturated markets, smartphones are booming in emerging markets. Africa alone is heading toward one billion devices. MiMedia fills a gap here, as many users do not have access to premium clouds or only use basic functions. With its pre-installed solution on partner devices, MiMedia efficiently reaches precisely this target group. The highly scalable model generates revenue through advertising, storage subscriptions, and licenses with very attractive margins. Its focus on growth regions and deep integration into local ecosystems makes MiMedia a unique player with significant leverage. The market for personal cloud services is far from saturated, especially where MiMedia is active. The stock gained more than 100% in July and has been consolidating since then. The stock is currently trading at CAD 0.78.

Palantir – Unique model, strong figures, high valuation

Palantir stands out because it provides big data software for ultra-sensitive areas, from intelligence agencies to corporations. Its all-in-one approach combines data collection, analysis, and operational use at a unique level. The depth of customer integration is crucial. In-house engineers develop customized solutions on-site that are extremely difficult to replace. Combined with the highest security standards and the ability to master even chaotic data sources, this creates an almost monopoly-like position in niche markets. This mix makes the model difficult to replicate.

Palantir is currently delivering impressive figures, especially in the US. Revenue jumped 48% to over USD 1 billion in the last quarter, driven by a 93% increase in US corporate business. Margins and cash flow are excellent, with cash reserves of USD 6 billion and zero debt. Over 150 major contracts, including dozens in the double-digit million range, demonstrate the Company's growing foothold. However, the international business is lagging. Growth of only 12% outside the US highlights the Company's strong dependence on its home market.

The valuation remains the key sticking point. With a price-to-earnings ratio of over 500 and a price-to-sales ratio of around 100, Palantir is extremely expensive, even by tech standards. This reflects the immense expectations for future growth of over 30% per year. Any disappointment could hit the share price hard. In addition, competition from tech giants like Microsoft is intensifying. For investors, it is a gamble. If US momentum continues and Palantir manages to break into new markets and industries, the valuation may be justified. At the current price of USD 179.54, however, a new entry does not appear attraUSe.

The cloud and AI revolution offers strategic opportunities, but choosing the right players is crucial. SAP shines with its successful transformation into an integrated cloud AI platform, combining robust growth with operational strength. MiMedia Holdings is pursuing smart scalability through cost-efficient smartphone partnerships, particularly in emerging markets, recently accelerated by its China deal with ADG. Palantir impresses with its unique data depth and strong US momentum, though its valuation remains very high.